Markets likely to stage comeback next week
Mumbai, May 13 (UNI) The markets were in a correction mode towards the close of the week as the nine-day rally came to a halt with 327 points fall in the last two trading sessions.
The close of the Bombay Stock Exchange (BSE) benchmark index on Friday at 12,285.11 points will certainly attract investors to the counters, as there is enough liquidity waiting on the sidelines to enter the market at lower levels.
However, Rs 1,199 crore selling by the foreign institutional investors (FIIs) will make investors cautious, the FIIs seem to have sold on Friday as well when the sensitive index (Sensex) fell by 150 points.
Newly listed Reliance Petroleum Ltd closing price of Rs 83.95 on Friday as compared to its listing price of Rs 101.95, will certainly attract lot of buyers,.
The higher crude oil prices in the global markets, too, could impact the markets on daily basis as oil prices hovered in the range of USD 72-73 per barrel in the global markets.
The fear of government raising the petroleum product prices may not be as severe now with the Left parties victory in state assembly elections for West Bengal and Kerala.
However, any price hike will lift the stock prices of oil marketing companies like Indian Oil, HPCL, BPCL and Reliance Industries.
Sensex may recover the losses completely next week and regain momentum as broad fundamentals of the Indian economy remains strong and the UPA government at the Centre has become more stable with the favourable results of the just concluded assembly elections.
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