D-Street to remain upbeat on firm global cues: Analysts
Dalal Street is expected to trade with a positive bias on firm global cues and stocks are going to touch their 52-week highs this week, analysts say.Updated: Sep 06, 2009, 12:17 IST
Dalal Street is expected to trade with a positive bias on firm global cues and stocks are going to touch their 52-week highs this week, analysts say.
"The domestic market would remain upbeat on positive movement in the global bourses. Market is on a consolidation mode since the past few weeks and there is still sufficient investor confidence," Unicon Financial Chief Executive G Nagpal said.
Marketmen feel that investors are holding on to their portfolios on expectations that the market would reach even higher levels in the near term.
"The market is expected to sail through higher levels this week. Investors would look at how the market sustains at those levels and after that buying confidence would be back," Ashika Stock Brokers Research Head Paras Bothra said.
The Bombay Stock Exchange benchmark ended the week down 1.5 per cent at 15,689.12 points as profit-booking in equity markets globally dragged down the Sensex during the first four days of this week.
"Investors have discounted the impact of a weak monsoon and expect that stocks, backed by positive global cues, are going to touch their 52-week highs this week," Bothra said.
"Market has now understood that the fear of weak monsoon was a little exaggerated and as time progresses, economic performance will fall in place," Nagpal said.
Over the week, foreign institutional investors sold a net Rs 1,304 crore worth of Indian equities.
The Sensex has gained about 95 per cent from its lowest level in 2009 in early March.
"There is buying participation in the broader market. Institutional investors are putting in money and adequate liquidity would keep the market buoyant," Bothra added.
Analysts feel data from countries, including the United States, indicate that global economies are gradually crawling out of the downturn which is keeping the market upbeat.
On Wall Street, the Dow Jones industrial average was up 96.66 points, or 1.03 per cent, at 9,441.27 and tech heavy Nasdaq advanced 1.79 per cent at 2,018.78 points at the end of trade on Friday.
Asian markets were mixed with the Chinese benchmark Shanghai gaining 0.58 per cent to 2,861.61, while Japan's Nikkei 225 fell 0.3 per cent.