The Dalal Street is likely to witness a brief rally in the days ahead, as the stock market heads towards consolidation amid expectations that the Reserve Bank of India (RBI) will announce positive measures in its policy review tomorrow.”With the RBI expected to announce rate cuts favourable for the banks and the housing sector, the market can see some rally as the interest rate-sensitive stocks would see some upside,” Taurus Mutual Fund Managing Director R K Gupta said.

Besides, the market would also take cue from the developments globally, as not much of trigger is expected at home.

“The US economic stimulus package of $825 billion is likely to be passed by the Republican lawmakers. This will give some positive push to the investors in domestic market,” Gupta said.

Analysts feel that the domestic market has gradually started absorbing negative news and in the short-term, the downslide would be limited.

“Market would consolidate and take a rally on short covering. Metal stocks are showing resilience, which shows that there is demand in the economy. Moreover, RBI measures to infuse liquidity would further stem up the demand,” SMC Global Vice President Rajesh Jain said.

“At the current levels the stocks are depressed, but there are no buyers in the market. Investors are taking a pause before putting in their money as they want the stocks to reach the bottom levels,” Jain added.

Marketmen said with the earning season nearing its end, markets would also see some stock-specific activity with major steel, telco and cement companies expected to announce their quarterly figures this week.

source: BusinessStandard

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