Sensex outlook: Stocks seen volatile

Analysts also opine that the worst seems to be over for the Indian stock markets.

After snapping a two-week losing streak with a gain of nearly 950 points last week,the stock markets may witness volatility in the coming sessions in the view of settlement of March derivative contracts due on March 31,say experts.

The Bombay Stock Exchange bellwether Sensex saw impressive buying in the week gone by as the key index surged by 936.83 points,or 5.23 per cent,to close at 18,815.64 on Friday,driven by healthy gains in the global equities and the fund inflows from domestic as well as overseas institutions.

Market observers feel that the rebound last week has boosted the investors’ confidence,but we may see some profit booking in the coming week.

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“The rally has turned the market sentiments positive. Market is likely to be volatile as settlement of March derivative contracts is due on March 31. The cash flow trend in equity market is also expected to be influenced by financial year ending on March 31,” Bonanza Portfolio Senior Research Analyst Shanu Goel said.

Analysts also opine that the worst seems to be over for the Indian stock markets as the negative news flow from the domestic markets have been factored in,but the uncertainty on global events such as oil prices and the after effects of the Japanese earthquake may limit the gains in the near term.

“Besides,the corporate earnings,which are around the corner,will also decide the movement of the market,” Emkay Global Financial Services Head-Private Wealth Management & Strategy Om Ahuja said.

In the week gone by,the BSE barometer Sensex witnessed the maximum gain on Friday,primarily led by IT heavyweights like Infosys,TCS and Wipro after reports stated Nasscom has requested the Centre to extend the Software Technology Parks of India scheme for one year.

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IT stocks also received a boost following strong results from Oracle and Accenture,which according to experts is a positive sign for the stock markets in the near term.