Northward rally to continue

Written by fe Bureaus | Mumbai | Updated: Aug 31 2009, 06:33am hrs
Indian equity indices might continue with its winning streak in the coming week, riding on the hope of global economy recovery and revival of the monsoon. Apart from that, markets will be looking at Indias gross domestic production data which is to be released in the coming week coupled with performance of the foreign institutional investors (FII).

Last week, the 30-share Sensex of Bombay Stock Exchange (BSE) added 4.47% or 681.51 points and S&P CNX Nifty of National Stock Exchange (NSE) gained 4.49% or 203.55 points.

On Friday, last trading day of previous week, Nifty closed at yearly high for the current calendar year. On Friday, Sensex closed at 15,922.34 points up by 141.27 points or 0.90%, while Nifty rose by 44.15 points or 0.94% to end the day at 4,732.35 points.

An analyst from a leading broking house said, Markets are likely to go in the northwards directions in the coming week. However, at higher levels we might witness some profit-booking in the markets. Apart from that, weak closing of US markets on Friday might also have some adverse effect in the markets when it opens on Monday.

Dealers in the markets also say, debut of state-run hydropower firm NHPC would be closely watched as it would set the tone for other companies looking to raise funds through the primary market in the coming days.

However, domestic markets will be looking to take cues from the movements in global markets, performance of the foreign funds and progress of monsoon. On Friday, FII were net buyers at Rs 554.31 crore while domestic institutional investors (DII) buying stocks worth Rs 5.46 crore.

In August, FII have been net sellers at Rs 3,496.15 crore while DII are net buyers at Rs 4,966.07 crore. We might see some fresh inflows coming to Indian markets in the coming days, due to the improved markets condition in the last few days.

However, some profit-booking cant be ruled out and there are chances that markets might remain volatile, said a dealer in the market.