Markets to start on a positive note this week

Written by Markets Bureau | Mumbai, Sep 28 | Updated: Sep 30 2008, 04:19am hrs
Indian equity markets, which witnessed extensive volatility in the last weeks trades, are likely to start on a positive note this week. The US house of representatives has approved India to resume the trade in nuclear fuel and technology. This. dealers say that, will be viewed as a positive development and bring in some cheer. And at the same time, traders would be watching out for key developments, both domestic and global, in the week ahead.

Anita Gandhi, head institutional business at Arihant Capital Market said, This news can bring much awaited relief in the domestic markets. In the past weeks we saw huge volatility in the market, but in the days to come we assume that global market will continue to determine the market direction for some more time now.

The positive closing of US markets on Friday might also have positive impact on Indian markets on Monday. Dow Jones Industrial Average gained 121.07 points or 1.10% and closed at 11,143.13 points on Friday, while Nasdaq Composite ended marginally lower, losing 3.23 points or 0.15% and ended the day at 2,183.34 points.

If we see some constructive news on the $ 700 billion bail-out plan, the domestic markets will have huge positive impact, added Gandhi. On Friday, last trading of the week, the Sensex had plunged down by 445 points or 3.28% and had ended the day at 13,102.18 points on the back of the bail-out being stalled. The broader S&P CNX Nifty of National Stock Exchange (NSE) was also down by 125.30 points or 3.05% and had closed the day at 3,985.25 point.

Analysts and traders will also be on the look out for other developments, prime amongst them is the roll-out of second quarter results. The first quarter did show significant signs of a slowdown in earnings growth and this will be watched out in the second quarter as well. Then there is the Securities & Exchange Board of Indias board meeting on October 6 and it will take a comprehensive review of a several critical factors. The market will be looking out for developments on the FII front. Also, this week will mark the beginning of exchange traded currency derivatives on the BSE.