Foreign funds to decide Sensex fate next week
Mumbai, Sep 17: The declining crude oil price, rising rate of inflation, rising FII fund flow, the rising Forex reserves and the forthcoming Q2 financial results, are some of the factors which will decide the performance of equity market in the coming weeks.
The foreign funds grew for the week and with strong fundamentals in view it is expected to grow further. The net FII inflow in two trading sessions, between September 13 and 14 was over Rs 1,000 crore, that after index fell 368 points on Monday on high FII selling pressure.
The next big trigger is expected to be Q2 financial results and a lot of decisions will be based on that performance.
According to Morgan and Stanley, a ratings agency, Sensex will remain range bound between 11,900 to 12,500 for this year, but will cross the 13 k mark in the first part of the year 2007.
Midcap scrips are expected to do well in the coming weeks.
In addition, the declining crude prices will help to bring down inflation and will also help in controlling the prices of domestic fuel.
Overall, the markets is expected to remain range bound between 11,900 and 12,250.