Sensex may open up tomorrow on falling crude oil price
Mumbai, Sep 10: Bombay Stock Exchange (BSE) sensitive index (Sensex) is expected to open in the green on Monday backed by falling crude oil price, which has come down to US dollar 66.91 a barrel.
The market has gained 18 per cent over the past two months. And given the current situation, India is trading at higher valuation as compared to the other emerging markets, which may attract corrections sooner or later, according to some experts.
Oil and gas and auto majors are expected to do well on chances of falling crude price. Also, the government decision to make use of five per cent ethanol in petrol obligatory from Novemeber, will assist the market to be positive towards these scrips.
The cement stocks, too, are expected to rally positively next week, as the south-westerly monsoon has retreated.
Overall, it is felt that the inflation will hurt the Consumer Durables and the Capital Goods sectors, if it is not checked in time.
The rise in total foreign reserves to USD 166.458 billion will, however, take control of Foreign Institutional Investors (FIIs) flying tendencies and other volatilities, experts believe.