Dalal Street is expected to trade with a positive bias this week on strong global cues, reformist measures announced by the government and expectation of strong corporate earnings, analysts said.
“The market is on a bullish momentum. The government is making right noises in terms of PSU disinvestment and foreign investors are looking at the Indian market for investments,” Unicon Financial Chief Executive G Nagpal said.
Marketmen feel that a stability in buying activity would be visible as investors are now certain that the worst is over and the Indian market is heading towards providing the best return in last six years.
“There is no dearth of liquidity in the Indian markets as the domestic investors are flush with funds and retail participation is increasing. Earnings reported by big companies are better than street expectations and that would give a positive push to the market,” Nagpal noted.
The BSE benchmark Sensex gained over 1,241 points or 9.19 per cent during the past week to end at 14,744.92, the best weekly gain in nearly two months and also one of the strongest among the major Asian indices.
“The markets have already taken a rally last week. One should now exercises caution as the market might take a breather this week and just trade with a positive bias,” SMC Global Vice President Rajesh Jain said.