Rate cut hope likely to boost mkt

Written by Markets Bureau | Mumbai | Updated: Mar 3 2009, 04:36am hrs
The Indian equity market, which is reeling under pressure of quite some time, might find some respite in the coming week. Several factors such as merger of Reliance Petroleum and Reliance Industries, expectation of rate cuts, and announcement of general election this week might boost the sentiment on Dalal Street.

Last week, the announcement of GDP which stood at 5.3 % in the December quarter from a year earlier, had a negative impact on the domestic markets. On Friday, the last trading day of previous week, the 30-share Sensex of Bombay Stock Exchange (BSE) lost 63.25 points, or 0.71%, to close at 8,891.61 points. The broader S&P CNX Nifty of National Stock Exchange (NSE) was down by 22 points or 0.79% to end the day at 2,763.65 points.

During the last week, the Sensex was marginally up by 48.40 points, while Nifty gained 27.20 points. An analyst from the leading broking house said, The coming week we might witness some positive sentiments in the markets. Hopefully some news from the RIL-RPL merger might boost the outlook of the markets for few days.

Some dealers in the markets also believe that, there are strong chances that this week we might witness cut in the repo rate of reverse repo rate. However, the global markets will play the crucial role to lead the Indian markets.

An analyst from the leading broking house said, Despite some positive triggers we hope that markets are likely to remain rangebound manner. Next week being the start of a new series, there could be some built-up in the futures positions which might take the Nifty back to the 2900 levels.

However, some players feel there is huge worry of foreign institutional investors, who are out of the markets since many weeks, might have adverse impact on the markets, as they are waiting for the new government to be formed and new policies to be announced by the new government.

A dealer in the market said, The picture in very unclear at this time, there are chances that markets remains volatiles till the new government comes in.