However, with US markets closing below the dotted line on Friday, there are chances that there might be weak opening on the domestic bourses on Monday. On Friday last trading day of previous week, the 30-share Sensex of Bombay Stock Exchange (BSE) added 45.39 points or 0.45% and closed the day at 10,048.49 points, though during the week benchmark indices gained over 12.06%. The S&P CNX Nifty of National Stock Exchange (NSE) added 26.40 points 0.86% to end the day at 3,108.65 points.
Dealers in the market say that, apart from strong rally of global markets, there has been intense buying from the foreign institutional investors (FII) and domestic investors also in the last couple of trading session, which has led the benchmark indices to close last week with huge gains.
Deven Choksey, MD of KR Choksey Securities said, Globally things are turning to be favorable. Apart from that, FII are going short in the market as they assume that, rupee is likely to appreciate. This upward rally can continue for few more trading sessions, however I dont feel that general election is likely to affect the market. But during the elections time, domestic markets are likely to remain under pressure.
In the last few days, there has been constant buying in the Banking index and dealers also added that, if there are more rate cuts from the Reserve Bank of India (RBI), there might be some more rise in the banking stocks.
An analyst from the leading broking house said, Indian markets will be in line with the global markets. However once the elections comes nearer there are chances that, there might be immense volatility in the markets.