The Dalal Street is likely to consolidate at higher levels this week on some positive global cues after a lacklustre November, when benchmark Sensex lost 1.86 per cent, say analysts.
It was the first November in nine years when the benchmark index witnessed a fall losing 1.86 per cent over the month.
Sensex had ended with a gain of 360 points on Friday at 19,363.19.
Analysts believe this week would be a consolidation period as there are no local cues to spur the market.
“Markets will consolidate at higher levels this week and await cues from the global markets, which are also expected to strengthen. FIIs may resume buying on the domestic bourses but it would occur only after they get some clarity on concerns impacting the US economy,” SMC Global Vice President Rajesh Jain said.
US Federal Reserve, which is scheduled to meet on December 11, is expected to come up with another rate cut and hopes were backing the positive sentiments on the global markets, analysts believe.
Foreign Institutional Investors had remained net sellers in November with a sale of equities worth Rs 5,849.90 and Rs 469.30 crore sale in the debt markets.
For the past 11 months, the FIIs have been net purchasers of Indian equities to the tune of Rs 65,907.30 crore (about 15.85 billion dollars). While the number of registered FIIs in the country has grown to 1,173.