An analyst from the leading broking house said, in the last few days, market saw continuous upward trend on the hope that government will announce stimulus package. But now as the package has been declared, it might boost the sentiments of the markets, but there are hardly any chance that market can sustain its upward rally.
Last week, the 30-share Sensex of Bombay Stock Exchange (BSE) gained 424.70 points or 4.45% to close the week below 10K at 9,958.22 points. The S&P CNX Nifty of National Stock Exchange added 124.55 points or 4.26% during last week and finally ended at 3,046.75 points on Friday, last trading day of previous week.
Dealers in the market also added that, strong closing of US markets on Friday will also have positive impact on Indian markets. Anita Gandhi, head of institutional at Arihant Capital markets said, Now that the stimulus package has been announced, we have to see how market responds to the package. Initially there might be an upward rally and we might even see Sensex touching 10,200-300 markets, but as quarter results starts coming in there might be some volatility in the markets.
As the vacations season is over we can expect foreign institutional investors (FII) again entering the markets, but whether they will be buyers or sellers is also to be seen in the coming days. I think that, now the major news after the stimulus package will be of announcement of price cut in petrol and diesel prices, added Gandhi.
An analyst from the leading broking said, We assume that, Realty and Banking stocks will continue their upward rally after the package has been announced. Now markets will closely monitor the central banks quarterly review of monetary policy which is scheduled on January 27.