Sensex to continue northward journey next week: Analysts
Worst seems to be over for the stock markets and the benchmark Sensex is likely to continue the rally it saw on Friday after a lull of three previous trading sessions, driven by hectic value buying at attractive levels, feel experts.business Updated: Dec 12, 2010 10:46 IST
Worst seems to be over for the stock markets and the benchmark Sensex is likely to continue the rally it saw on Friday after a lull of three previous trading sessions, driven by hectic value buying at attractive levels, feel experts.
In an extremely volatile week, the Bombay Stock Exchange bellwether Sensex plummeted by 458 points, or 2.29%, to close at 19,508.89, amid the barrage of bad news, including concerns on bank's profitability, sudden selling by the FIIs, liquidity crunch and a series of stories on stock price manipulation.
"Dust related to all the irregularities in the market seems to have settled and the recovery is likely to continue with Sensex breaching the psychological 20,000-mark in the coming week," Globe Capital PMS Head KK Mittal said.
Marketmen also opine that the better-than-expected industrial growth numbers released on Friday, which supported the tumbling market with rebound of 266 points after shedding 739 points in the previous three sessions, will further boost the investor sentiment.
"Market sentiment received a big boost after October's IIP data came in much above consensus estimates," IIFL Research Head Amar Ambani said.
Analysts feel that Dalal Street which has been facing a turbulent time, should witness buying at the prevailing attractive levels as the fall has given investors a great opportunity for bargain hunting.
Coming week, the investors will also keep a close watch on the November's headline inflation data, due for release on December 14, along with RBI's mid-quarter review policy to be announced on December 16.
Besides, movement in the global peers will also decide the fate of the markets back home.
On Friday, the US markets ended firm while the Asian markets closed mixed as China raised banks' reserve requirement ratio by 0.50 percentage points, for the sixth time in year, in order to curb inflation.