'D-Street to remain upbeat on strong global cues'

Also propelled by reformist measures announced by government

“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 flushed 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. Traders feel that strong results by the major US financial institutions like Citigroup, JP Morgan and Goldman Sachs have propelled market sentiment there. Moreover, the economic scenario in the major economies like China, Japan and Singapore, could signal that globally the worst is over. Last week the US markets remained positive, with the Dow Jones Industrial Average gaining 32 points at 8743.94 points and the tech-heavy Nasdaq rising 0.08 per cent to 1,886.61. “There has been signs of reversal in the global markets. For short term things look better for the Indian market as overall sentiment is improving,” Ashika Stock Brokers Research Head Paras Bothra said.

Several Indian companies, including Reliance Industries and  Bharti Airtel are scheduled to report results next week. “Right now too much money is flocking the market. Even if some big corporates post weak earnings that would not impact the broader market, it would be mostly stock specific,” Nagpal said. Foreign Institutional Investors continued putting in money in the emerging markets with an investment of Rs 1,485 crore last week in the Indian market alone. “FIIs will eventually turn buyers here as the risk aversion is reducing among them as the US markets are improving,” Bothra added.  

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