However, mixed closing of US markets on Friday might have some negative impact on opening of domestic markets on Monday. An analyst from the leading broking house said, With constant plummeting inflation coupled with decrease in global crude prices, Indian bourses will continue to take the cues from the West in the coming days. Foreign institutional investors (FII) who have been buying consistently, might also impact the market positively if they continue to be net buyers in the Indian market.
Last week, Indian equity markets saw huge volatility on hopes that government might announce stimulus package. On Friday, last trading day of previous week, the 30-share Sensex of Bombay Stock Exchange (BSE) closed at 10,099.91 points an increase by 23.48 points or 0.23%, gaining 409.84 points or 4.23%, in the last five trading session. Last week we also saw Satyam Computer Services call-off its $ 1.6 billion acquisition plan of Maytas Properties and Maytas Infrastructure after institutional investors objected.
The broader S&P CNX Nifty of National Stock Exchange (NSE) added 16.75 points or 0.55% to end the day at 3,077.50 points on Friday. Nifty gained 156.15 points or 5.35% in the last week. Dealers also added that, interest sensitive sector like Realty and Banking sectors surged ahead on the hopes of announcement of stimulus package, are likely to remain in front for the next few days.
We will witness the volatility in the markets, as we see during the expiry of every months contract. However, if Indian government plans to attack Pakistan , we might observe markets once again going down, said an analyst from the leading broking house.