Interim Budget may resurrect mkt

Written by Markets Bureau | Mumbai | Updated: Feb 16 2009, 14:51pm hrs
The US Congress green signal to a $787-billion fiscal stimulus package could well bring in some cheers to the D-street in the coming week. The announcements in the interim Budget is also likely to pump up the sentiments.

However, lack of participation by foreign players and the constant decline in volumes are likely to have adverse effects on the markets, say dealers.

On Friday, the last trading day of previous week, the 30-share Sensex of Bombay Stock Exchange added 168.91 points or 1.78% to close the day at 9,634.74 points. The broader S&P CNX Nifty of National Stock Exchange (NSE) was up by 55.30 points or 1.91% to end the day at 2,948.35 points.

An analyst from a leading broking house said, With the news of Barack Obamas stimulus package, we might see domestic markets opening on a strong note. Then during the intra-day trading on Monday, there will be interim Budget which might also boost the sentiments of the markets.

Dealers in the markets say there are hopes that the government might announce some sops for real estate and banking sector. And this might keep the stocks of these sectors upward during the week.

After the average IIP numbers last week, there are hopes that the central bank might cut interest rates further to boost liquidity in the domestic markets, said an analyst from a leading broking house.

Market players are, however, worried that if the markets go in the northward direction, there are strong chances that foreign institutional investors (FII) will sell and book some profit.

Like we have been witnessing in the past few, markets are likely to see benchmark heavy-weight indices are being bought in the coming days also, dealers added.