Going by Dalal Streets performance on Friday, the market is expected to look up in the forthcoming week as well, say market watchers. The rebound which saw the Indian bourses end at its best close since last two weeks, has rekindled hopes that the market has bottomed out.
A good week of trade is on the cards where we could see the market hitting earlier highs. Unless the Nifty breaches 4200, the market is set for a short-term uptrend, said DD Sharma, senior vice president at Anand Rathi Securities.
The upcoming General Budget is the next trigger that investors are keenly awaiting. Although budget expectations have toned down significantly, investors will look forward to pro-market reforms such as privatisation and relaxation of FDI norms that could help strengthen the market and in turn facilitate growth, Sharma added. This could spur sentiment thus sending equities to earlier highs in the coming week.
However, worries of below-normal monsoon forecast still remain which could keep playing on investor minds. On Wednesday, the government said the 2009 monsoon rainfall would stand at 93 per cent of the long-term average, lower than an earlier forecast of 96 per cent.
Meanwhile, sentiment across global markets has turned positive yet again which will aide the market mood. US stocks were back in action on Thursday as investors were relieved that Federal Reserve Chairman Ben Bernanke weathered a congressional hearing well.
The way the market picked up steam Friday, it augurs well for the market. Foreign institutions have turned buyers once again. Also, domestic funds as well as LIC were active today, which gave a fillip to trade, said Anita Gandhi, head-institutional business at Arihant Capital.