D-Street to remain upbeat

D-Street to remain upbeat

Expectations are high that UPA govt will initiate more reforms

“The market will remain far more vibrant this week and domestic market can outperform world peers in terms of percentage if there is no negative news on the global front,” said Unicon Financial CEO G Nagpal.

Marketmen feel that a stability in buying activity would be visible as investors are now certain that the new government would comprise old timers in key portfolios. “Market is relieved that key ministers are mostly old timers who performed their task with limited head-room available with the Left support, they would perform much better now,” said Nagpal. Analysts feel that although there would not be any sharp rise this week but the expiry of futures and options contract on May 28 would bring in some short covering in market.

Meanwhile, the allocation of six key portfolios by Prime Minister Manmohan Singh on Saturday is unlikely to impact the market as analysts think they were on expected lines. SMC Global Vice-President Rajesh Jain said, “Allotment of portfolios is mostly on the expected lines. Pranab Mukherjee with Finance portfolio would help accelerate reforms.” Moreover inflow of foreign institutional investments into the markets are also expected to continue.

Initial euphoria

“The initial euphoria regarding the UPA win in the general elections has dried up in the market. We will be back to the world markets for a direction. Further, expectations are being built up for the Union budget and market would look forward how the new government balance that,” Kejriwal Research and Investment Services Head Arun Kejriwal said.

Moreover, overseas investors remained bullish about the Indian equity markets this week and have invested over Rs 6,000 crore. “FII investment would continue to trickle in as with the rating agencies upgrading India outlook they are now convinced that the country’s growth story is intact,” Nagpal noted.

Further, with no major surprises coming in the portfolio allocation, no major moves are expected in frontline stocks.

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