With overseas fund houses betting big on Indian equities, the stock market is likely to continue its upward journey this week, analysts said.
“We expect the market to remain firm, as even advance tax numbers were higher than that of last year,” SMC Global Securities Research Head (Retail) Saurabh Jain said.
“With the positivity from the global front, we are steadily approaching near the all-time high zone and are likely to extend the up move in the coming weeks, with required consolidation for the sustainable move,” Jain added.
In the past week, Indian markets continued their strong momentum and scaled new highs. The Sensex and Nifty reached levels last seen in January 2008, backed by robust inflows from FIIs.
“The momentum of the market has been very strong. It is likely to remain so, unless there is any significant negative development in the global space,” brokerage firm ICICIdirect said.
Equity analysts, however, also said profit-booking cannot be ruled out in the coming days, as the market has risen very fast in recent sessions and many blue-chip stocks are trading at lifetime high levels.
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“Due to very fast movement, some profit-booking cannot be ruled out. However, those corrections should be taken as an opportunity to get into the market. Investors should maintain caution at higher levels,” a broker said. Some analysts also said that on Friday, the market sentiment would also be somewhat influenced by the judgement in the Ramjanambhoomi-Babri Masjid dispute.
The Allahabad High Court will deliver a judgement in the Ramjanambhoomi-Babri Masjid case on September 24.