However mixed closing of US markets on Friday, last trading day pf previous week, Indian bourses are likely to remain in bearish mode. Apart from that, constant concern that the global economic slump will hit corporate earnings badly might also have negative impact on markets.
Dealers in the markets say, we dont expect any major recovery for global stocks in near term and we might witness indices continuing their southward journey. However, some dealers feel that, banking stock will remain unpredictable for the remaining week after the credit policy on January 27.
An analyst from the leading broking house said, Reserve Bank of India (RBI) in its quarterly monetary policy review is expected to hold interest rates steady after the recent aggressive cuts. However, we expect some cut in the repo rate and reverse repo rate, which might stimulate the deprived economy.
On Friday, last trading day of previous week, the 30-share Sensex of Bombay Stock Exchange closed at 8674.35, down by 139.49 points or 1.6%. The broader S&P CNX Nifty of National Stock Exchange (NSE) shed 35.25 points or 1.30% to end the day at 2,678.55 points.
We dont expect any considerable upward rally unless RBI gives us some surprises. Apart from that, last week we also saw inflation again going up, which is also worrisome for the markets, added an analyst.
Some dealers also added that, Prime Minister Manmohan Singhs absence is unlike to impact market movement as the government nears its term end, though it could sentimentally reflect negatively on market.
The overall sentiment remains negative for the domestic markets and any upward rally can be witnessed only if there is some calmness in the global equity markets.