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Equity markets to face heat due to selling pressure

Written by: Staff
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Mumbai, Mar 18 (UNI) The news of the Rs 5,700 crore new fund collection by Reliance Mutual Fund will certainly boost equity market sentiments next week.

The market though seemed to be approaching the 11,000 mark with caution as it dipped 90 points to close at 10,860 after soaring to an all time high of 10,951 yesterday.

The new week may see the Sensex crossing the 11,000 mark if it gains 140 points, but analyst see markets trading lower as the financial year draws to a close.

The Sensex may see a correction of 300 to 400 points next week on the back of selling pressure, as the financial year is drawing to a close and March 23 being the last day for the clearing of the positions in the future&options (F&O) market, said an analyst.

Equity markets may come down next week on profit booking as tax collection may drive liquidity away from the markets, opined another analyst working with a top broking house.

Midcap stocks where profit booking was on with 70 per cent stocks closing lower and only 30 per cent advancing, may see some more profit booking, he said. However, scrips of cement, engineering and auto anciliaries could see buying next week, he added.

The foreign institutional investors (FIIs) seemed to be slowing down their investments in the Indian equity markets. With only Rs 418.30 crore invested in the first three trading days of the week.

On Thursday, the FIIs' net investment shrank to Rs 24.20 crore only, which might lead to caution among the investors next week.

Another factor which will dampen sentiments are the crude oil prices which have gone up, hovering in the range of USD 62-63 per barrel.

UNI RRP KD SKB1555

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