Domestic markets are likely to experience record earnings booking before Christmas. However, in the absence of major domestic triggers, the stock market would focus on global events, primarily the update and development of US financial stimulus.Related to COVID-19 vaccination in the next week shortened by the holidays and Brexit, analysts said.
Geojit Financial Services head of research Vinod Nair said that this week the market will keep its focus on global events as a decision on the US stimulus package and the Brexit deal can be expected.
Siddhartha Khemka, Director of Retail Research at Motilal Oswal Financial Services, said: “Looking ahead, markets may continue their positive bias thanks to abundant liquidity, effective vaccine deployment and growing prospects for US financial stimulus.
However, intermittent earnings booking cannot be ruled out as the Christmas holidays start this week. Markets could also be volatile given the monthly expiration of futures and options (F&O), he added.
Investors will also follow the investment pattern of Foreign Portfolio Investors (FPI), one of the main drivers of the Indian equity markets.
On Saturday, Kotak Mahindra Asset Management’s Dr. Nilesh Shah tweeted, Markets are seeing an unexpected surge as flows (retail and FPI), fundamentals (September results, anticipated tax numbers) and sentiments (low debt yields, budget hope) have come together.
Sumeet Bagadia, CEO of Choice Broking, said: “Investors will continue to monitor the development related to the COVID-19 vaccination, the stimulus update and the Brexit trade deal.”
“Currently, the indices appear to be in the hands of charged bulls and the mighty bear appears to have given up. However, a slight reserve of earnings on the way up cannot be ruled out,” said Nirali Shah, senior research analyst at Samco. Values.
Over the past week, the benchmark BSE index gained 861.68 points or 1.86%.
Financial markets will be closed on Friday for Christmas.
(With contributions from agencies)
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