The weekend has seen a slew of measures being taken and this is likely to have a positive impact on the markets in the week ahead. Analysts and traders will be working out the details of the package and looking at sectors and companies that will benefit from these decisions.

While the steps taken by the Reserve Bank of India in cutting the signalling rates was in line with the expectations and the fiscal stimulus too was expected, the cut in the excise rates was not.

Dealers also added that, since the market has not done much in the past few days, markets are likely to remain volatile. However, after the measures from the RBI and the government might witness a short-term pull-back rally, but the long-term negative trend is likely to dominate the markets.

The US markets ending last week with huge gains, domestic markets are likely to open with positive gap on Monday. On Friday last trading day of the previous week, Dow Jones Industrial Average gained 259.18 points or 3.09% to close the day at 8,635.42 points. Nasdaq Composite also closed at 1,509.31 points up by 63.75 points or 4.41%.

Deven Choksey , MD of KR Choksey Securities said, ?I don?t think that measure from the central bank will have much impact on the markets in the long run. We need some more extra measures to lift the sentiments of the markets.?

However, some players in the markets feel that, dipping inflation, continuous measures from the RBI coupled, cut in petrol and diesel prices and now excise rates are likely to play important part in the markets in the coming days. Analysts await the new inflation numbers and will observe the steps taken by companies to cut prices to stimulate demand. Already, Tata Motors and Maruti have announced that they would be revising prices. Also, margins are likely to improve as input costs for a lot of players are also expected to change.

An analyst from the leading broking house said, ?We assume that, government is doing their best to infuse more liquidity in the markets, but these measures are not enough. We need more cut in CRR and SLR rates also, now we can hope that we get some surprises at the credit policy in January.?

On Friday last trading day of previous week, the 30-share Sensex of Bombay Stock Exchange (BSE) lost 264.55 points or 2.87% and ended the day at 8,965.20 points. The broader S&P CNX Nifty of National Stock Exchange (NSE) shed 73.60 points or 2.64% and closed the day at 2,714.40 points. Some dealers also added that, domestic markets re likely to look to the west for the cues and results of state election on Monday, will also have some impact in markets on the first few days on the coming week.