| Foreign Fund Inflows Remain Major Factor Behind Surge In Market |
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| Market News - Business News | |
| Written by Mediabharti Syndication Service | |
| Tuesday, 27 July 2010 | |
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Mumbai (India): Indian markets maintained their upsurge during the previous week also on the back of positive sentiment and support from the global markets. During the first couple of days, however, the markets saw indecisiveness among participants with some caution at the higher levels. The positive momentum during the last three days of the week helped both indices to make fresh highs for 2010 and also to close at their highest levels since early February 2008. On a week-on-week basis, the BSE Sensex rose by ~175 points, or almost 1%, to close at 18,130.98. The S&P CNX Nifty also went up by ~55 points, or 1%, to close at lows for the week. Global markets also remained supportive led by US markets despite weak economic data. Strong upside momentum has been driving the Indian markets and helped them to reach their fresh highs in this year. Foreign fund inflows remained the major factor behind such a surge in the market. Continuing their recent buying spree, FIIs have infused over Rs.6500 crore into Indian cash equities so far in this month. Domestic institutions, however, seemed to be looking for some profit booking opportunity at higher levels and have been net sellers of more than Rs 3500 crore during this month so far. The Q1FY11 earning season, so far, has not surprised the market on either side. The coming week, though, would be important in this regard as the market would closely watch numbers of Reliance Industry. The RBI also would release its monetary policy on July 27 and any rate hike of more than 25 bps is likely to be negative for market sentiments. Among other developments, monsoon progress continued to be weak with overall rainfall remaining 17% below normal according to the latest data by the Indian Meteorological Department. Some caution, thus, is likely to be seen at higher levels. Failure of both indices to sustain their gains on the last trading day of the previous week also indicates that the broad range for the Nifty in coming days is likely to be 5500-5350. |
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