In the last on week, the 30-share Sensex of Bombay Stock Exchange (BSE) gained by over 2.03%, while broader S&P CNX Nifty of National Stock Exchange (NSE) was up by 1.27%. On Friday, last trading day of the previous week, BSE added 75.96 points or 0.96% to close the day above 11K at 11,023.09 points and NSE ended the day at 3,384.40 points gaining 14.90 points or 0.44%.
Markets players sense that, this upward rally can be attributed in the domestic markets to the continuous buying from the foreign institutional investors (FII) and on increasing confidence the worst of the global recession is over.
An analyst from the leading broking house said, With inflation nearing zero percent, we hope that there might be rate cuts from the Reserve Bank of India (RBI) in the monetary policy on April 21, which can boost the sentiments of the D-street in the coming week.
The inflation for the week ended April 4, stood at 0.18% compared to 0.26% a week earlier. Also the positive closing of US markets on Friday, last trading day of the previous week, will have some upbeat impact, on Monday. Dealers in the markets say that, if Nifty breaches the crucial 3,500 mark in the coming week than, there are chances that, markets might witness other small upward rally.
If markets continue their growing rally, then we can also witness profit booking which we had witnessed in the last week. Apart from that Banking and Realty sector will remain in the limelight in the day to come. However, the political concerns still remain in the mind of investors, which might have some negative impact on the markets, said analyst from the leading broking house.