Indian equity market again resumed its rally and rose for the second straight consecutive week. The overall movement remained highly volatile throughout the week and saw both sided movement, due to cautiousness before the general budget, which is scheduled to be delivered on the first day of the coming week. On a week-on-week basis, the BSE Sensex closed up by 148 points or 1% to close at 14913.05. The S&P CNX Nifty ended at 4424.25, higher by about 49 points or 1.1%. The Sensex for the Q1FY10 also rose significantly by around 40% on strong global cues and domestic growth prospect.Global markets remained subdued last week with US economic data acting as the major sentiment dampener.
The coming week is going to be an important one for the market, as the general budget for 2009-10 will be delivered on the very first day. Expectations are very high in terms of reform measures, higher spending on priority sectors etc. and those have been the primary force behind the recent upsurge in the market. The budget is expected to provide a broad direction to the equity market, which has been witnessing seesaw trading for the last couple of weeks. Since, the expectations have been very high, the probability of a significant positive surprise seems to be less. On the other hand, a short fall of expectations may trigger significant profit booking, which the market has been able to avert for a long time. The other factors that would be important for the market are progress of the monsoon, which so far has been poor and the start of result season, with Infosys, among the biggies to report its Q1FY10E result on July 10, 2009.