In the absence of important domestic triggers, equity market place would turn its concentrate on international events mostly US economic stimulus update and improvement connected to COVID-19 vaccination in the vacation-shortened week ahead, analysts mentioned.
The domestic market place may well also witness profit-booking at record levels.
Financial markets will stay closed on Friday for Christmas.
“Going ahead, the markets may continue with its positive bias on the back of abundant liquidity, effective vaccine rollout and increasing prospects of a US financial stimulus. However, intermittent profit-booking cannot be ruled out as the Christmas vacation starts from this week,” mentioned Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Markets could also be volatile offered month-to-month futures and choices (F&O) expiry, he added.
“This week, market will be maintaining its focus on global events, as a decision on the US stimulus package and Brexit deal can be expected in the coming days,” Vinod Nair, Head of Research at Geojit Financial Services mentioned.
Investment pattern of foreign portfolio investors (FPIs), a important driver of Indian equity markets, will also be tracked by investors.
Sumeet Bagadia, Executive Director, Choice Broking mentioned, “Investors will continue to monitor development related to COVID-19 vaccination, stimulus update and Brexit trade deal.” “Currently, indices seem to be in the hands of all-charged bulls and the mighty bear seem to have given up. However, one cannot rule out mild profit-booking on the way up,” mentioned Nirali Shah, Senior Research Analyst, Samco Securities.
Over the previous week, the BSE benchmark gained 861.68 points or 1.86 per cent.