The present stock market movements that have reported small gains in the past week are likely to follow the lead of the market scenario overseas. This includes meeting scheduled on Tuesday for Federal Open Market Committee and the US reports on the housing markets.
Continuing for the 3rd week in a row, the Sensex gained modestly climbing 67 points at Friday’s close at 16933.83. Despite this, the analysts are still of the view that owing to these global worries, the markets should predictably remain highly volatile.
In their advice to the investors who are likely to trade in the week ahead, they ask them to stick to the stocks because a lot of factors still remain to impact the BSE Sensex. The FOMC meet is the key event that the world will have its eyes on.
Apart from this, the further rise in interest rates by the RBI in the last week by 25 basis points, as a policy to curtail inflation, is also an area of concern for those looking at investments in the markets. It is very likely that the RBI could further raise the interest rates if the inflation doesn’t become tame and the rupee keeps falling.
Analysts are of the view that the last rise in the Sensex had accounted for this rise in interest rates and it is expected that the Nifty be hovering within 4900-5200 levels.
‘Bell the Bull’ supports the opinion of analysts who believe that global developments and price changes in fuel shall be the key factors moving the market in the short run