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Global trends likely to influence markets

Written by: Staff

Mumbai, June 17 (UNI) With the Bombay Stock Exchange (BSE) Sensex closing in a positive territory on the two consecutive occasions, the semblance of decency has returned to the market which had been in the negative for the last five weeks.

Despite the negativity, there are people with hope and see India as the strongest emerging market.

DSP Merrill Lynch Chairman Hemendra Kothari, in a recent news item, said, ''I see the corrections as a temporary phase and foresee the long term investors to be entering the Indian markets soon.'' However, there is conflict in his statement since the same agency in a report this week cited, ''Fund managers confidence in the Indian market is at its lowest in the last five years.'' These statements have baffled the short term investors as they need to be cautious.

The experts believe that stocks which have fallen and have the potential to grow in the long term, should be purchased. The investments should be made only after proper study of various stocks and with the experts guidance.

The markets are expected to remain range-bound and trade between 9,000-10,000 levels. The market's performance is currently dependent on the Asian and the global markets.

The increase in inflation from 4.68 per cent to 4.72 per cent is also likely to overvalue the stocks in the market for the coming week, experts feel.

Also, the scrips of the FMCG and the consumer goods sector might tumble after the meterological department forecast that the monsoon could be delayed by one more week before travelling to the north India from the deep crevices of the Deccan valley, where it is stuck for now.

The global markets may also stabilise with the stability of the US markets as Federal Reserve Chairman Ben Bernanke has toned down the issue of US inflation saying expectations of price increases had ''fallen back somewhat'' and that the impact of high energy prices on the US economy has been limited.


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