All the good things to drive markets higher have happened in the last few months. Inflation fell, oil prices went lower, RBI cut interest rates and the ECB announced a huge $1.3 trillion stimulus for the Indian markets.
Announcements from Obama Visit
Next week markets would look for any significant announcements to be made following the visit of US President Barack Obama to India. Should there be understanding in key sectors and further hopes of fuelling investment from the US, we could see a fresh trigger for stocks. Even if there is no major announcements, the market mood is so buoyant we are unlikely to see a major fall based on it.
Greece Elections May be the Only Worry
Next week one event that would be eagerly watched is the election results in Greece. The real worry for stock markets around the globe and also in India is the the anti-austerity party Syriza is ahead in opinion polls and the lead is now a good six per centage points. Should Syriza win an outright majority in the Greek elections it will renegotiate the terms of Greece's bailout deal.
And with anti-austerity measures the party could be taking on its lenders head-on, putting at risks billions of euros lent by lenders to the country.
This is not a good outcome for global markets, which have rallied and rallied really fast in the last few weeks. The election results are to be known only late on Sunday and would be eagerly watched by most market analysts.
Apart from this there are no major cues for next week. As mentioned the worries in Greece maybe a temporary aberration, unless there is a threat of default by Greece to lenders, which could be catastrophic, as it could lead to default worries in other weaker European countries.