Sensex likely to be down over crude oil prices

Mumbai, July 15: The BSE sensitive index is expected to open in the red over current mid-east crisis, which has resulted in the serious hike in oil prices, touching a record high of US Dollar 78 per barrel.

Experts feel if the situation persists the oil price will hit US Dollar 80 per barrel mark and will definitely affect the domestic bourses too.

However, the performance of benchmark heavyweights in their first quarter will decide the overall health of the sensex. As the strong growth in the net profit of Infosys rallied the sensex to close in the positive even after the serial blasts rocked Mumbai.

The predicted average rainfall in July has had a positive impact on the FMCG, Capital Goods and Consumer Durables sector, which have all grown by one per cent for the week.

Major sectoral indices are expected to trade positively except the Oil &Gas and Auto segment, which are likely to be affected by the hike in crud oil prices.

Growth in the Foreign Exchange Reserves by US Dollar 240 million to US Dollar 163.6 billion will take control of the FIIs fleeting tendencies and other lack of investments.

Strong economic fundamentals despite increase in the inflation rate to 4.6 per cent will control any strong fluctuation on the BSE sensex.

UNI