New Delhi: The stock market is likely to continue with its positive momentum but may face bouts of profit-booking amid lofty valuations in this holiday-shortened week, analysts said.
The trading sentiment will be guided mostly by global trends in absence of major domestic events, they said. Markets would remain closed Friday for ‘Ganesh Chaturthi’.
Industrial production data is scheduled to be released Friday, which happens to be a trading holiday.
The BSE 30-share benchmark zoomed 2,005.23 points or 3.57 per cent last week. The benchmark scaled the 58,000-mark for the first time Friday to close at its lifetime high of 58,129.95.
The Sensex took just three sessions to go from the 57,000-level to 58,000 last week while the BSE benchmark soared over 9 per cent last month.
The benchmark index has gained 10,378.62 points or 21.73 per cent so far this year.
“Going ahead, market is likely to continue with its positive momentum as economic recovery and vaccination continues their northward journey. Strong liquidity and positive global cues are likely to support domestic markets to continue their movements to record levels.
“However valuations are also moving beyond comfort zones and hence could lead to bouts of profit-booking and increase in volatility,” said Siddhartha Khemka, Head – Retail Research, Broking & Distribution, Motilal Oswal Financial Services Ltd.
“We are going to have a truncated week as the markets will remain closed on Friday on the occasion of Ganesh Chaturthi,” Santosh Meena, Head of Research, Swastika Investmart Ltd said.
“Domestically, economic data such as manufacturing output and industrial production could drive investor sentiment this week. In absence of any other major event, Indian indices are expected to mirror global cues and move in tandem with foreign bourses,” Samco Securities Research said in a note.
Markets would also track movement in the rupee, Brent crude and foreign institutional investments.
PTI
