Q2 results knocking on the door, to be decisive

Mumbai, Oct 8: Quarter two results are going to be strong, as the performance of sensex over the past few months has been encouraging, Experts' have opined. Market has risen 2,286.90 points or 22.6 per cent, from a low of 10,085.91 on 21 July 2006 to the current 12,372.81.

However there is a glitch, stock prices are highly over-valued, and they would be affected once the quarter two results are not upto the expectations, feel the experts.

Prime Minister Manmohan Singh yesterday said that infrastructure development is the need of the hour and a total of Rs 350 billion would be needed to keep the GDP growth rate at 8 per cent. If the big infrastructure projects take place, major construction scrips like L&T, GMR infrastructure and Reliance are likely to go up, which would show directly on the BSE index.

According to Goldman and Sachs, Indian economic fundamentals are very strong and long term FII and FDI inflow is expected in the Indian market. Also the US Federal reserve is planning to slash its interest rates by Feberuary, as crude oil prices are declining. This development may help Global rates to come down, and indirectly affect the oil and refinery, as well as Auto and Metal prices too.

Overall the market is expected to be volatile, as the Financials begin on Oct 11.

UNI

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