#dailynews60 : Equity markets are expected to sustain their positive momentum this week after the US and China reached their much-awaited trade deal, analysts said.
The US-China trade truce and Boris Johnson’s win in the UK general elections drove global markets higher late last week.
The US and China have suspended additional tariffs on each other’s goods after reaching a ‘phase one’ trade deal after prolonged negotiations.
“The recent developments on the global front have subsided the fear of prolonged crisis and that cheered the participants across the world markets including ours. And, we feel the positive momentum to extend further in the coming week too,” said Ajit Mishra, VP -Research, Religare Broking.
The current market momentum can sustain this week as well, provided there is more clarity on the US-China trade settlement, said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Further, liquidity flows have been supportive which may continue for a while, he added.
While valuations remain high, positive global cues and liquidity flows may help sustain the market momentum this week as well, Khemka further said.
Among macroeconomic factors, participants would eye announcement of WPI inflation on Monday.
“We expect the market to continue to move higher as momentum is favouring the bulls while easing global sentiments is a much bigger boost for investors at this moment,” said Mustafa Nadeem, CEO, Epic Research.
Market sentiment will also be impacted by factors such as rupee-dollar trend and crude oil movement.
Last week, the BSE 30-share Sensex advanced 564.56 points or 1.39 per cent. On Friday, the 30-share index zoomed 428 points, or 1.05 per cent, to close at 41,009.71.