Indian markets likely to witness record level profit-booking before Christmas

Head of Research at Geojit Financial Services Vinod Nair stated, this week, the market might be sustaining its concentrate on global occasions, as a decision on the US stimulus package and Brexit deal will be expected.

Adding to that, Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Providers, stated, “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 this week. Markets could also be volatile given monthly futures and options (F&O) expiry, he added.

The investment pattern of foreign portfolio investors (FPIs), a serious driver of Indian equity markets, may also be tracked by traders.

On Saturday, Kotak Mahindra Asset Managemet MD Nilesh Shah tweeted, markets are seeing an unexpected rise as flows (Retail & FPIs), fundamentals (Sept Results, Advance tax nos) and sentiments (low returns in debt, hope on budget) have come together.

Sumeet Bagadia, Executive Director, Choice Broking stated, “Investors will continue to monitor development related to COVID-19 vaccination, stimulus update and Brexit trade deal.”

“Presently, indices appear to be within the arms of all-charged bulls and the mighty bear appear to have given up. Nevertheless, one can’t rule out gentle profit-booking on the best way up,” stated Nirali Shah, Senior Analysis Analyst, Samco Securities.

Over the previous week, the BSE benchmark gained 861.68 factors or 1.86 per cent.

Financial markets will remain closed on Friday for Christmas.