Analysts bullish on Indian markets in the medium run

Market analysts Tuesday said they expect further reforms being announced by the government which in turn might lead the bursar into a bullish spell over the medium term.

"We expect further reforms and remain positive on the domestic infrastructure and cyclical sectors over the medium-to-long term," said Dipen Shah, head - private client group research, Kotak Securities.

"Ater the steep run-up in several of these stocks, we recommend sticking to quality and advise selectively investing in stocks having strong balance sheets and ethical managements."

However, the benchmark index of the Indian equities markets ended its four day's consecutive gaining streak on Monday. The market ended marginally down by 5.45 points or 0.02 percent.

It earlier touched an intra-day record high of 27,969.82 points surpassing its previous high of 27,894.32 points hit on Friday.

This was the third consecutive time that the Sensex hit a record high.

The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 27,943.04 points, closed trade at 27,860.38 points, down 5.45 points or 0.02 percent from the previous day's close at 27,865.83 points.

The analysts attributed the rise to the reform process initiated by the government, coupled with further fall in the brent crude prices. Sentiment was also buoyed by indications from US Fed to keep interest rates low for a considerable period of time.

"Better-than-expected growth numbers in US, China and easing of monetary policy from Japan also added to market optimism," Shah added.

ZyFin Advisors' chief executive Devendra Nevgi told IANS that with all the triggers on which the market can react being positive, the earnings need to catch up for the markets to remain on the high growth trajectory.

"There are healthy global cues like reduction in crude prices, Japanese central bank's decision to print-in more money and the pick-up in global sentiments," Nevgi said.

The Indian markets were closed Tuesday on account of Muharram and will be shut on the Nov 6 (Thursday) on Guru Nanak Jayanti.

Analysts added that in the near term, focus will consistently remain on further reform initiatives, winter session of the parliament will be closely watched for developments on GST (goods and services tax) and land reforms.