Happy New Year! The beginning just got earlier for the market and we hope it bears fruit. We expect a positive opening. US market fell on the last trading day of 2009. Asian markets are mixed but Japanese shares have extended the recent advance. European stocks finished higher on Dec. 31. Things might remain sideways to start with as the market braces for the year ahead after a phenomenal comeback last year.The market ended on a reasonably strong footing with the Nifty closing above 5200. The Sensex too made a new high for the year 2009.
Quarterly earnings, RBI’s policy moves and the Union Budget will be the key events that will drive the sentiment in the initial few weeks. Global economic data points and earnings will also have a bearing but to a lesser extent. Trends in fund flows and movement in other markets (currency and commodities) will be among the other key triggers.
Let’s hope that in 2010, the market does as well as it did in 2009.
