Market bull run likely to continue on hopes of vaccine, US stimulus

Mumbai, Dec 20 : The recent record run on the Indian equity indices is likely to continue in the upcoming week on the persistent hopes of vaccines to combat the novel coronavirus pandemic and the expected economic stimulus in the US.

During the past week, both the BSE Sensex and the Nifty50 on the National Stock Exchange (NSE) touched fresh all-time highs.

Deepak Jasani, Head of Retail Research at HDFC Securities, noted that the undertone of the Indian market was upbeat during the week amid positive global cues following the progress in coronavirus vaccine.

MS Education Academy

Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services, said: “Going ahead, the market may continue with its positive biasedness on the back of abundant liquidity, effective vaccine rollout and increasing prospects of Brexit deal and US stimulus.”

He, however, said that intermittent profit booking cannot be ruled out as the Christmas vacation starts from next week and the FII liquidity could slow down. The market could also be volatile given monthly F&O expiry next week, Khemka added.

According to Vinod Nair, Head of Research at Geojit Financial Services, the US Fed’s decision to keep rates unchanged will help foreign institutional investors to maintain a positive view on emerging markets like India.

“In the coming week, the market will be maintaining its focus on global events, as a decision on the US stimulus package and Brexit deal can be expected in the coming days. The RBI will be releasing deposit and borrowing data of Indian banking system for the month of November,” he said.

Growth in business figures is expected and it will have a significant say in the forming of banking sector outlook, for the coming quarters, Nair added.

On Friday, Sensex closed at 46,960.69, higher by 70.35 points, or 0.15 per cent, from its previous close.

The Nifty50 closed at 13,760.55, higher by 19.85 points, or 0.14 per cent.

Disclaimer: This story is auto-generated from IANS service.

Subscribe us on The Siasat Daily - Google News
Back to top button