Market to rebound on package hope

Written by Markets Bureau | Mumbai | Updated: Feb 10 2009, 04:05am hrs
Indian equity markets which witnessed huge volatility last week are likely to get some respite coming week, on the back of announcement of US stimulus package. On the domestic front, there are chances that there might be announcement of stimulus package for some sectors and measures from the RBI are also expected by the market players.

However, dealers in the markets say that, on the domestic front there are no cues which will impact the markets, so there are chances that we might witness upward rally in the coming week, on the back of US stimulus package.

Apart from that strong closing of US markets on Friday, last trading day of previous week, might boos the sentiments of the markets in the coming days. Last week Indian bourses had closed the week on the flat note.

The 30-share Sensex of Bombay Stock Exchange (BSE) added 209.98 points or 2.31% to close the day at 9,300.86 points. The broader S&P CNX Nifty of National Stock Exchange (NSE) gained 63.05 points or 2.27% to end the day at 2,843.10 points.

An analyst from the leading broking house said, In the last few weeks we are witnessing that markets are under pressure and are closing with minor gains or losses, which indicates that there is lack of retail participation in the domestic markets. Apart from that, there are no other cues, which will boost the sentiments of the markets.

Also dropping volume at both the stock exchanges is also worrisome for the Indian markets. Dealers in the market also say that, there are also bright chances of some strong measures by the Reserve Bank of India (RBI) to boost the liquidity problems in the market.

First three days of the coming week are to be seen as there might be some news from the US markets, which might have positive impact on the global markets. But if that, will not boos the markets, than we have to wait till February 16, when interim budget will be declared by the government, said a dealer from the markets.