Positiveness likely to persist despite upsets

Mumbai, Jul 8: Markets have shown a positive trend in the past two weeks and experts feel this positivity will continue in the coming weeks, too.

The reasons that have been attributed for this are - healthy prediction of monsoon for July and August and strong performance of the metals on the London Metals Exchange. It is also expected that the auto and IT scrips will do well, alongwith, FMCG and consumer durable stocks.

Besides, the increasing foreign reserves is a counter balance against the fragile investment by foreign institutional investors (FIIs).

The Investment Commission has set a foreign direct investment (FDI) target of US dollar 15 billion by 2008, which will also help to dissipate the FIIs' flying tendencies.

Even the Asian benchmark indices have declined last week, first over the testing of nuclear capable missiles by North Korea and, later, over the expected further hike in the US Fed rates over the robust demand of jobs in United States. This situation is likely to continue for few days. However, they will not affect the Indian bourses much, the experts felt.

According to experts, the markets are expected to trade in the green despite all the recent upsets, as the economic fundamentals are strong and they will keep the markets buoyant in the coming weeks.

UNI