Post-budget announcements and an unexpected lending rates cut by the apex bank, led a benchmark index of Indian equities markets to gain 87.45 points or 0.29 percent during the weekly trade ended March 5.
For the weekly trade ended March 5, the benchmark 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE) closed at 29,448.95 points, up 87.45 point or 0.29 percent.
The Indian markets were closed March 6, Friday on account of Holi.
The barometer index had ended the previous week’s trade at 29,361.50 points (Feb 28).
The market’s had gained nearly 400 points to touch a new high of 30,024.74 points on March 4, Wednesday after India’s central bank, the Reserve Bank of India, cut its key lending rates by 25 basis points.
Market analysts said the truncated weekly trade ended on a flat note despite the initial euphoria over the unexpected rate cut announced by the RBI and the post-budget rally.
“In the coming week markets will react to the US data as well as the parliaments on going budget session. Focus will be on to see the government’s ability to pass key bills in the on going session,” they added.
On the global front, the Indian markets are expected to react on the sharp increase in the U.S. non-farm payroll data for January and a slow rebound in oil prices.
The U.S. non-farm payrolls rose 295,000 jobs last month. The unemployment rate fell to 5.5 percent from 5.7 percent in January.
The Indian markets were anxious as rapid increases in non-farm payroll data might lead to an increase in inflation.
This can make the US Federal Reserve to raise interest rates sooner than previously expected. With higher interest rates the foreign institutional investors (FIIs) will be lead away from the emerging markets such as India.
