Mkts to look for progress on economic reforms this week

Stock markets are likely to remain volatile this week as investor sentiment will be guided by the ongoing Winter Session of Parliament as they track the progress on economic reforms, experts said.

The week will see truncated trading as stock markets will remain closed on Wednesday on account of Gurunanak Jayanti.

Besides, the expiry of November derivative contracts on Thursday will also keep stocks volatile, experts said.

"The Winter Session of Parliament has begun but no business was transacted in the first two days, raising concerns over the fate of various Bills which are proposed to be presented and passed during the session," said Dipen Shah, Head of PCG Research, Kotak Securities.

"If some of the proposed Bills are taken up and passed, we can see the sentiment turn bullish and markets trending higher over the next few weeks," he added.

According to Rakesh Goyal, Senior Vice President, Bonanza Portfolio: "In the coming sessions, markets are likely to see further buying. Investors' shall be looking for global cues and other post-reforms actions within the country for further market direction."

Analysts also said that global market developments will be key for domestic stock market.

"Investors will also track the GDP data for the second quarter which is due on November 30," said Alex Mathews, Head Research, Geojit BNP Paribas Financial Services.

Expectations of more reform measures in the Winter Session of Parliament in view of the rejection of the no-trust motion against the government pushed up the BSE benchmark Sensex by 197 points to 18,506.57 last week.

Besides, persistent foreign fund inflows into equity market are likely to boost the market sentiment, experts said.