Bulls pin hope on N-Deal booster
Dalal Street may turn bullish next week on the weekend-development of India getting a crucial waiver in the nuclear deal with the US. Read on...Updated: Sep 07, 2008, 12:25 IST
Dalal Street may turn bullish next week on the weekend-development of India getting a crucial waiver in the nuclear deal with the US, but cues from global stock markets would remain a key driver, analysts believe.
With the much-touted Indo-US nuclear deal getting the green signal from the 45-member Nuclear Suppliers Group (NSG) for the waiver, domestic markets are expected to start next week on a strong note, they said.
"The nuclear waiver is a positive thing for the market. The Indian markets were holding back because the investors were apprehensive about the NSG decision," domestic brokerage firm SMC Global's Vice President Rajesh Jain said.
The waiver would enable India to carry out civil nuclear commerce, ending 34 years of isolation enforced in the wake of the 1974 Pokharan nuclear tests.
"Markets are likely to open strong on Monday and can look forward for a better week," Jain said.
After a strong opening driven by positive sentiments created by nuclear deal waiver, the Indian markets could take cues
from the global market, but a positive sentiment should prevail, he added.
However, the continuing stalemate over Tata's Nano plant at Singur in West Bengal could turn out to be detrimental for the domestic bourses, some other brokers said.
Domestic markets would also be keenly watching the meeting of the Organisation of Petroleum Exporting Countries next week. OPEC is scheduled to meet on September 9 in Vienna, where a decision is expected on whether to cut down oil production or leave it unchanged.
The 13 OPEC countries account for 40 per cent of world's oil production and crude oil prices have always been a key factor for the stock market movements.