Poll effect: mkts may face the music

Written by Markets Bureau | Mumbai | Updated: Apr 14 2009, 03:39am hrs
Indian markets which are performing in line with the global markets and continuing their northbound rally, might sustain even in the coming days. However, events like India going to poll in the coming week, coupled with results of quarter earnings and global markets can cause some impact to the markets.

Though, with US markets closing with smart gains on Friday, last trading of previous week, market participant sense that domestic markets will open with positive gap on Monday. With announcement of results of JP Morgan and Goldman Sachs in the coming week, might have some impact on the global markets.

Manish Sonthalia, fund manager at Motilal Oswal Securities said, Indian markets might witness some consolidation in the coming days. Markets will maintain its upward rally and there might be also some profit-booking. However 15 th April will be important day for the tech stocks as fourth-quarter earnings season which begins with Infosys Technologies could also depress sentiment.

During the last week trades, Indian equity indices maintained its northbound rally for the six consecutive trading sessions in line with the global markets and strong buying from the institutional investors. Indian markets Indian will remain shut on Tuesday on account of Ambedkar Jayanti.

On Friday, the 30-share Sensex of Bombay Stock Exchange (BSE) added 61.52 points or 0.57% to close the day at 10,803.86 points. The broader S&P CNX Nifty of National Stock Exchange (NSE) ended the day at 3,342.05 points down by 0.90 points or 0.03%, with both the benchmark indices gaining over 4% in the last one week.

Market might resistance at 3,450 levels and if it breaches that mark, then we might see some positive rally and more inflows flowing in the markets, added Sonthalia. Dealers in the market also added that, there might be some corrections only after the results are declared of the general elections and there might be some relief from the central bank during the credit policy on April 21.