Earning expectations to keep D-Street upbeat: Analysts

NEW DELHI: The stock market is likely to see uptrend this week on sustained capital inflows from foreign funds and upbeat investor sentiment ahead of the fourth quarter earnings, say analysts. 

"The market will trade in the positive terrain and the key indices will move up further this week on sustained participation of overseas as well as domestic institutional buyers," SMC Capital vice-president Rajesh Jain said. 

Marketmen said firm global cues and higher capital inflows from overseas investors on the back of a strong rupee will keep the market move up, however, there could be some volatility in the market as investors may book profit at every rise in the key indices. 

Analysts, however, cautioned that during the week there would be some correction as the market has advanced really up. "The markets will see consolidation as it needs a breather after nine weeks of continued gains," Bonanza Portfolio assistant vice-president for research-equity Avinash Gupta opined. 

IT bellwether Infosys will kick start the fourth quarter earnings season on Tuesday and the markets will closely watch the revenue outlook by the company. 

"Investor sentiment is upbeat ahead of the fourth quarter earning announcements and markets are likely to see some sharp rally," Geojit BNP Paribas Financial Services research head Alex Mathews said. 

Over the past week, the Bombay Stock Exchange's 30-share Sensex gained 1.35 per cent to settle at 17,933.14 points, stretching the weekly gaining streak to nine in a row, on the back of sustained buying by FIIs since early February. 

During the week, the barometer touched the 18,000-point level, the highest level in more than 25 months. 

"FIIs are bullish about emerging markets and the domestic markets will continue to witness good inflow in coming days," Jain added. 

Foreign funds have put in over Rs 24,255 crore ($5.35 billion) in the market so far this year. In just six-trading sessions in April, overseas fund houses have made a net investment of Rs 3,610 crore in the domestic equities. 

Over the weekend, the global markets closed firm with Dow Jones settling higher by 0.64 per cent to 10,997.35 and S&P 500 ending up by 0.74 per cent to 1,194.37. The Dow Jones crossed the 11,000-level on Friday, first time in 18 months. 

In Asia, China's Shanghai closed with a gain of 0.85 per cent, Japan's Nikkei rose 0.32 per cent and Hong Kong's Hang Seng jumped 1.56 per cent.