Indian equity indices might continue being upbeat in the coming days, however some profit-booking at higher level might lead the benchmark indices to remain volatile in the coming days. Apart from that, global cues coupled with foreign inflows and progress of monsoon, might have some impact on the markets.
However, with US markets closing on flat note on Friday, last trading day of previous week, Indian markets might have some negative impact when it opens on Monday. On Friday, last trading day of previous week, the 30-share Sensex of Bombay Stock Exchange (BSE) added 94.87 points or 0/63% to close the day at 15,103.55 points. The broader S&P CNX Nifty of National Stock Exchange (NSE) was up by 14.25 points or 0.31% to end the day at 4,586.90 points.
An analyst from the leading broking house said, ?Last week we witnessed some profit-booking in the markets. We hope that, markets might continue to remain positive in the coming days too and there might be some buying in the mid-cap and small-cap indices. Apart from that, domestic market might even witness a pre-budget rally on hopes of accelerated economic reforms and pro-reforms announcements.?
Finance minister Pranab Mukherjee will present the Union Budget on 3 July 2009 while the Economic Survey will be held on 2 July 2009 . Railway minister Mamata Banerjee will present the Rail Budget on 1 July 2009 .
Dealers in the market say the newly formed UPA government will have many tasks during the coming budget, which includes boosting growth and demand, continuing to maintain liquidity, balancing inflation and also containing the country?s worrying fiscal situation.
In the past few weeks, foreign institutional investors (FII) were the key drivers in the recent positive-rally. In the month of June only, FII have put in Rs 1,376.46 crores while their inflow stands at Rs 12,132.86 crores since 1 st January this year.
Dealers in the market also added that, in the coming days we might also witness mutual funds which are sitting on cash likely to enter the markets.