Strong indices and foreign funds to decide Monday opening

Mumbai, June 3 (UNI) As the BSE Sensex almost tripped the 10,000 mark and CNX Nifty tripped the 3,000 level, in a week that saw intense choppy sessions for the investors, market experts are not picking any guesses for Monday opening.

However, it is predicted that the positive Friday close of Bombay Stock Exchange (BSE) Sensitive Index (Sensex) at 10,451, up by 380 points from the previous close - largely on account of better performance by all except the smallcap and midcap indices - would continue when the markets open on Monday.

The performance of global markets, especially the US and Japanese markets, with Dow Jones, NYSE and Nasdaq as well as Nikkei closing in the green on Friday, would also have an effect on the Indian markets opening positively on Monday.

The strong performance of rupee, which was up by one per cent to the week's high of 45.90/US dollar yesterday, will factor alongwith reduced crude oil price and better sentiments amongst the foreign institutional investors (FIIs), to help Sensex open strong on Monday.

Nevertheless, the FIIs will continue to be net sellers for the coming week, but strong money market and Indian reserve of US dollar 162.692 billion will counter the FIIs' selling tendencies.

Domestic investors, especially the mutual funds, with strong cash reserves will be net buyers, and will assist the benchmark index to stay afloat in case of volatility.

Also, the markets for consumer durables and FMCG sector or segments catering to rural market will draw some strength with the progress of the monsoon to South India and especially to the commercial capital Mumbai.

Experts feel that volatility may continue since inflation touched the 4.74 per cent mark, the highest this year, as against 4.32 per cent during the previous week, especially due to increase in the prices of food, energy and manufactured products.

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