Preview: BSE to smile on global cues

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Panel reviews market to deal with global turmoilPreview: BSE to smile on global cuesEPFO should invest in market: ChidambaramSensex tumbles after rising 163 pts

Domestic markets are likely to witness consolidation on Friday, spurred by strong global cues with the US Senate approving the 700-billion dollar bailout package and the much-awaited Indo-US nuke deal, analysts feel.

Defying gloomy trend in the global markets, the benchmark Sensex had made substantial gains in the last two trading sessions, jumping as much as two per cent.

"The domestic markets are already oversold and with the new light of hope from the US Senate it is likely that the American markets would move up which in turn will trigger a rally in the domestic market," SMC Global Vice President Rajesh Jain said.

Further, with the Indo-US nuke deal receiving the green signal from American lawmakers, the domestic sentiments are expected to be boosted in the coming days.

Moreover, the US Senate giving a thumbs up for the mega 700-billion dollar bailout package for troubled financial institutions would be a shot in the arm for not only India but also global markets.

Following assurance from the Indian government on Tuesday that the Indian markets are well regulated and there is no need to panic, the Sensex shot up 265 points, to settle at 12,860.43, defying weak global trends.

For two consecutive trading sessions, the market ended on a positive note and on Wednesday regained its 13,000 key support level. Experts believe that the Senate approval of the rescue plan, which is expected to have a smooth sail in the House of Representatives, would boost Indian markets.

"The approval will smoothen the market sentiment, which is at present negative. The approval by the House of Representatives will bring some stability in the market," Asika Stock Brokers' Research head Paras Bodhra said.

However, some marketmen feel that approvals for bailout package and nuke deal were on expected lines and that they are unlikely to cause any major rallies in the bourses.

"The market is currently trading at its support level and would remain range-bound in the near term. Normalcy in the global financial market would bring stability home, but a huge rally is doubtful," Paras added.

However, the 30-share benchmark index BSE lost 47 points to settle at 13,055.67, while wide-based Nifty shed 35 points at 3,950.75 so far this week.