Domestic stock market investors will be closely tracking US fiscal cliff talks as lawmakers are expected to come out with a budget to prevent at least a portion of over $600 billion in tax hikes and spending cuts from taking effect in January.
Besides, the week may witness
volatile trading as auto and cement stocks attract attention as companies are expected to unveil monthly sales data from Tuesday, experts said.
"Any adverse development in the US, with regards to the fiscal cliff may result in enhanced volatility in the market," Angel Broking said in a report.
According to dealers, Indian equities for the last four weeks have been mostly direction-less as investors have been cautious about pumping funds at existing high levels.
"Market awaits further positive news for action. RBI had kept key policy rates unchanged in December too however, investors are still hopeful for rate cut in January. If there is a rate cut, rate-sensitive stocks like banking, auto and realty are going to benefit," Rakesh Goyal, vice president, Bonanza Portfolio said.
Investors will also closely watch third-quarter results and much action depends on these results. IT bellwether Infosys will kick start the earnings season when it announces its third quarter results on January 11.
Last week, Sensex rose by about 203 points to end at 19,444.84, snapping its last two-week string of losses.
All-round buying led by refineries, realty, power and capital goods, following persistent capital inflows from foreign funds amid sops for exporters announced by the government during the week boosted the market sentiment, analysts said.
© Copyright © 2013 HT Media Limited. All Rights Reserved.