Significant events like central bank?s monetary policy and expiry of July futures and option (F&O) in the coming week, domestic markets are likely to remain under pressure. However with encouraging quarter earnings of several companies and continuous inflows from the foreign funds, might keep benchmark indices in the upbeat mood.
Despite huge volatility and profit booking during the last week, Indian bourses managed to end the week with smart gains. In the last one week, the 30-share Sensex of Bombay Stock Exchange (BSE) added 4.30%, while S&P CNX Nifty of National Stock Exchange (NSE) gained 4.43%.
However, some dealers in the market say weak earnings figures from the Reliance Industries and flat closing of US markets on Friday might have some impact on the domestic bourses when it opens on Monday.
Sensex gained 147.92 points or 0.97% on Friday to close the day at 15,378.96 points, while Nifty closed higher by 44.80 points or 0.99% to 4,568.55 points. An analyst from the leading broking house said, ?Markets are likely to remain volatile as to major events are taking place this week. Apart from that lot depends on the global cues and inflows from the foreign institutional investors (FII) to trigger the markets.?
Apart from that, market players will eagerly watch for some surprises in the Reserve Bank of India (RBI) monetary policy review on Tuesday, July 28, 2009. Some dealers say, there are strong chances that, central bank is likely to keep rates on hold at its policy review.
On Friday, last trading day of the previous week, FII were net buyers at Rs 663.02 crore, while domestic institutional investors (DII) were net sellers at Rs 206.55 crore in the markets.
?As we witnessed huge profit booking last week after a recent surge in the markets, so ahead of F&O expiry on Thursday, there might be some profit taking place in the markets. However, cues from the global markets might also remain critical in the coming days,? said an analyst from the broking house.
