Wkly Preview: Trends +ve, markets to rally ahead

The upward momentum is likely to continue in the stock markets in the week ahead on the back of positive sentiment boosted by strong quarterly earnings and GDP numbers, analysts believe.

"The bullish sentiment in the market is bound to continue in the absence of any negative triggers," an analyst with a leading brokerage said.

The Bombay Stock Exchange (BSE) bellwether touched a new intra-day record high of 14,462.77 and closed at an all-time high of 14,403.77 on Friday, while National Stock Exchange's (NSE) S&P CNX Nifty also scaled new life-time high of 4,183.50.

Last week, the markets had shown great resilience in spite of the Reserve Bank of India increasing the repo rate scaling an upward rally driven by good GDP numbers and strong global cues.

Positive triggers for the markets last week include upgradation of the country's sovereign rating to 'investment grade' by leading global rating agency Standard and Poors (S&P) and corporate India's robust earnings tally in the December quarter, among others.

Most market analysts believe that the rally would continue on expectations that there would be no change in the securities transaction tax (STT) in the forthcoming Union Budget and speculations that the government may increase the limit for foreign shareholding in the aviation sector and retail sector.