Mumbai: Having scaled new heights, stock markets are likely to head toward a consolidation phase this week with directions coming in from rupee and global bourses, analysts say.
The 30-share benchmark index scaled the peak of 16,616.84 points by gaining over 1,000 points during the previous week.
“It is most likely that the market would continue with its positive rally and could also indicate toward a consolidation phase in the week,” a market analyst said.
The next trigger most probably would come in the form of earnings for the quarter ended September 2007 from corporate India. Analysts expect the companies to come out with decent to strong results, which could boost the market sentiment in the days ahead.
Political scenario and Q2 results would play an important factor in the days to come, Arun Kejriwal of Kejriwal Research and Investment Services (KRIS) said.
However, analysts believe the sharp rally in crude oil prices, which were hovering near $82 a barrel after hitting a record of $84.10, may give some jitters to the equity markets.
“The outlook for the market remains bullish as lower Fed rates are likely to translate into downward pressure on interest rates globally and upward pressure on risky assets such as equities,” said Sachchidanand Shukla, an economist with Enam Securities.
Another major concern is the rupee that has appreciated to its highest level in almost a decade, touching Rs 39.85 a dollar in intra-day trade. However, it had closed at Rs 39.90/91 per dollar on Friday.