Stability expected to persist on renewed confidence

Mumbai, June 24 (UNI) The Bombay Stock Exchange (BSE) this week gyrated between 9,700-10,401 level and is expected to stabilise and rotate around the 10,500 level for the coming week.

The global markets including Dow Jones, Nasdaq, and Nikkei declined on the final day of trading, however, it is expected, since the Indian markets have gained the confidence of investors with comparatively steady performance, they would remain steady for the coming week too.

Experts feel, among the major factors influencing the market next week - the increase in inflation for the past three weeks is a worrying trend. This week it grew to 5.24 per cent from the previous 4.72 per cent.

Second, the US Federal Bank will meet from June 28-29 to decide on the hike in Federal Interest rates by 50 basis points. The move can trigger a slide in the global stocks and would have a cascading effect on the interest rates of other banks across the globe.

The experts are also of the opinion that equal distribution of monsoon would impact the stocks of FMCG and Farms sector products.

Given these factors, it can be expected that the volatility at sensex would continue next week, however the strong Indian economic fundamentals - barring the increase in inflation rates - Indian markets would open on a positive note on Monday.

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