What seemed a little different this week, is the fact that there was some buying seen from Foreign Portfolio Investors for a few days in succession. This led to a steady rally in stocks for at least five successive days in the week.
In fact, markets closed the week significantly higher and the momentum is likely to continue into the next week as well. The Nifty ended the week with gains of 330 points, which is rather decent.
Corporate results would remain the key and the expectations going into the next few weeks is not too great.
This week saw some action in the beaten down names. For example, IndiaBulls Housing Finance and IndiaBulls Real Estate saw some sharp recovery. Housing Finance stocks in general saw solid buying support from lower levels. PNB Housing Finance, which crashed to a 52-week low of Rs 370, saw a spectacular recovery on Thursday and Friday.
So, was the case with IndiaBulls Housing Finance. Quarterly results are likely to throw light on the performance of some of the housing finance companies.
Bajaj Consumer was another stock that slumped to a 52-week low of Rs 195 on Oct 15 and suddenly jumped to Rs 257. There were reports of a leading asset management company lapping up shares in the company.
HDFC Bank is likely to react to its quarterly numbers. As was expected the bank put in a good show, through provisions rose sharply.
Yes Bank had a stunning rally this week, jumping almost 30 per cent, on reports that a select set of industrialists are set to pick a stake in the bank. Hotel Leelaventure too saw its share price rallying after reports that it had been acquired by Brookfield.
There is likely to be some staggered buying from Foreign Portfolio Investors, which should see the market trend higher. It will not be a surprise to see the broader markets participate in the coming days.
The markets would be closed on Monday on account of elections in Maharashtra.
Good global cues
Global cues were also great, with the Brexit deal being sealed. This led to some rally in global stocks. Also, hopes of a trade deal between China and the US also helped global sentiments. All in all, the moment it seems there are no negative cues from across the globe.
The only worry for the India and global markets is low growth rates. Action would continue to shift to corporate results with a lot of numbers slated in the next one week.