Stock markets rally likely to continue in short-term, say analysts

Stocks markets are expected to continue their winning run in the short-term driven by hopes of more stimulus measures and stock-specific action while investors would keep an eye on quarterly earnings by leading IT firms and macroeconomic data, analysts said.

Key stock market indices jumped more than 4 per cent last week in their longest winning run in almost a year. The 30-share BSE barometer, Sensex, advanced 1,812.44 points or 4.68 per cent while Nifty gained 497.25 points or 4.35 per cent in the week to Friday.

A dovish RBI monetary policy and steps to boost liquidity in the banking sector to promote lending supported the market rally for the seventh consecutive day on Friday, which was the longest winning run in almost a year.

Equity markets will now turn their focus on quarterly earnings, with Wipro and Infosys scheduled to announce their results this week, also macroeconomic data, global trends would be eyed, analysts said.

"Going ahead, market is expected to remain positive but with sector/stock specific action. Investors would now track earnings season and watch out for management commentaries.

"Developments around stimulus package both from the US and the Indian government would keep the sentiments positive. This week India's inflation data and industrial output would be watched out," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Wipro, Infosys, MindTree, Federal Bank and HCL Technologies Limited are the major companies to announce their earnings this week.

"Markets are expected to continue their rally in the short-term in anticipation of further measures from the Indian government to provide a bonanza of stimulus. Upcoming hearing of moratorium is also expected to drive the domestic market this week," Vinod Nair, Head of Research at Geojit Financial Services said.

"Quarterly results along with the fate of IPO listings will dictate the course of action for the bourses in the shorter time frame," Nirali Shah, Senior Research Analyst, Samco Securities said.

Shares of UTI Asset Management Company and Mazagon Dock will list at the bourses on Monday.

Sumeet Bagadia, Executive director, Choice Broking said, "Going ahead market is likely to trade volatile in upcoming sessions. Key factors such as IIP, CPI data, Q4 earnings of corporates will govern investors' sentiments."

Markets would also track rupee movement and COVID-19 cases.