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| Markets to trade in limited range: Analysts |
| Press Trust of India / New Delhi Mar 28, 2010, 15:29 IST |
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The stock markets are likely to trade in a limited range this week in absence of any major trigger on the domestic front, analysts said.
"The market will trade in a range as it has stretched the gain for seventh consecutive week. The market is trading in a range for sometime and during the period, some profit booking may happen," Delhi-based SMC Capitals Equity Head Jagannathan Thunuguntla said.
During the week ended Friday March 26, the Bombay Stock Exchange's barometer Sensex--that comprises 30 bluechip stocks--extended gains for the seventh consecutive week, mainly on the back of a continued purchasing momentum since early February. Sensex has advanced 0.37 per cent over the week.
This is the biggest stretch of weekly gain by the index since June 2009.
"The stock market is expected to trade in a range. Auto stocks will be watched this week as monthly sales figures will come out during the period," Bonanza Portfolio's Assistant Vice-President (Research Equity) Avinash Gupta said.
According to marketmen, the market may witness selling pressure during the coming period and any global event like the bailout plan for Greece or a political development may trigger volatility in the market.
"On Monday, the market may witness profit booking by the domestic institutional investors," Jaypee Capital Services' Senior Vice-President Saurav Arora said.
"The Indian market is waiting for any international event that will trigger a fall in the market. This is the right time to offload shares and the market may see some profit booking in the days to come," Thunuguntla further said.
On Friday, the Sensex gained by 85.91 points, or 0.49 per cent, to settle at 17,644.76 points, the highest closing level since January 18.
However, better capital inflow into the Indian equities by the overseas fund houses may boost investors' sentiment, analysts opined.
"FIIs are bullish about the Indian market and fund inflow will continue to come in the coming period also," Gupta added.
In March alone, foreign investors have poured in a net Rs 16,976 crore ($3.7 billion) in the Indian equities.
"We are expecting a higher markets. The market is poised for more higher levels. Globally, investors are bullish after the Greek bail-out situation," Arora said.
"Immediate concern for market is how the Greece bail-out unfolds and the next trigger is on the movement of the euro against dollar," Arora added.
Over the weekend, in Asian market, the Euro edged up from a 10-month low against the dollar after the Euro zone leaders along with the International Monetary Fund agreed on a safety net for Greece, as a result the dollar backed off a two-month peak against the Japanese yen.
On Friday, the Indian rupee surged by 26 paise to touch an 18-months high level against the US currency on persistent dollar selling by banks and exporters amid sustained capital inflow into domestic equity markets.
Asian stock markets settled firm on Friday with China's Shanghai ending higher by 1.34 per cent, Japan's Nikkei by 1.5 per cent and Hong Kong's Hang Seng gaining 1.32 per cent. In Europe, Britain's FTSE closed flat.
Over the weekend, the Dow Jones Industrial Average closed with a modest gain of 0.08 per cent at 10,850.36 and S&P 500 settled marginally higher by 0.07 per cent at 1,166.59. Nasdaq closed in red with a slight fall of 0.10 per cent.
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