Bombay Stock Market in an resurgent mood

Mumbai, Aug 27 (UNI): The Bombay Stock Exchange (BSE)is in a resurgent mood and the fact in offing is the last two months performance, where the BSE has gained almost 15 per cent.

Also this weeks' closing assures the investors to remain invested for longer periods.

Foreign Institutional Investors are in a mood to invest after Fitch ratings and in view of the fact that Domestic Mutual Funds are sitting on a huge pile of cash, waiting for the right opportunity to spend. Analysts also say that significant fund flows in equities are expected from domestic insurance companies this year. Life Insurance Corporation alone plans to invest Rs10,000 crore in equities this financial year (FY 2007).

However, their is an immediate concern and that is the Iran nuclear crisis. It is expected that in case of nuclear sanctions by US, Iran may block oil exports fuelling a hike in global fuel prices. Iran is the fourth largest oil exporter and any sanctions may affect pricing of domestic fuels.

Another concern for next week could be the rising rate of inflation, which again grew to 4.92 per cent from previous weeks 4.82 per cent.

Overall the market is expected to open in the green, but no one can predict its close. It will depend largely on what shape the Iranian crisis takes.

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