NEW DELHI, Dec 1: Stock markets are likely to start on a positive note on Monday taking positive cues from last week’s close and may see cautious trading afterwards ahead of state election results and winter session of the Parliament, which starts on December 5, experts said.
Besides, auto companies will be in focus amid release of monthly sales volume data for November.
Trend in investment by foreign institutional investors, global cues and movement of rupee will be key drivers for the stock market in near-term.
“On Monday, we’ll see the market reacting on GDP numbers on the opening note and considering the Friday’s close, markets are likely to uphold the prevailing positive bias in the next session too.
“For fresh buying, one may consider private banking counters & select midcap stocks as decisive breakout above 6,200 in Nifty would accelerate the pace of rise in the days to come,” said Jayant Manglik, President Retail Distribution, Religare Securities Ltd.
After hitting a four-year low in the first quarter, the economy grew by a higher-than-expected 4.8 per cent in the September quarter.
Gross domestic product or GDP rose 4.8 per cent in July- September compared with 4.4 per cent in the previous quarter.
“A GDP figure that beats expectations should lead to a surge in the equity markets and rupee appreciation. It would also give the RBI some leeway for further Repo rate increases in the future, if required,” said Raghu Kumar, Cofounder, RKSV.
The results of elections in five states — Chhattisgarh, Delhi, Madhya Pradesh, Mizoram and Rajasthan — will be declared early this month.
Delhi will go to polls on December 4, while polling will be held today in Rajasthan.
Over the past week, the Sensex has added 574.54 points to clock its first gain after three successive weeks of declines. The index fell 373 points in November, after a record close of 21,239.36 on November 3.
Mirroring bullish sentiment, overseas investors poured in Rs 8,000 crore (USD 1.3 billion) in the Indian stock market last month.
With this, the total foreign investment in the domestic equity market has reached Rs 97,000 crore (USD 17.5 billion) so far in 2013, as per data available with the Sebi. (PTI)
Follow our WhatsApp channel