Bazaar this Week ( 10 to 14 Aug 09 )

by khalid on 16/08/2009 · 0 comments



Last Week ( 10 to 14 Aug 09 ) :

On a week-on-week basis, the BSE Sensex added 251 points or 1.65% to close at 15411.63. The S&P CNX Nifty ended at 4580.05, up 99 points or 2.2%. The initial weakness during the previous week was due to worries over monsoon progress, spread of swine flu and weak Asian markets. Positive comments from the US Fed that indicated economic recovery is under way, helped the global markets to reverse losses. The direct tax code proposal announced by the Finance Minister and sharp rise in June IIP figures helped the Indian markets to go up further.

Week Ahead ( 17 to 21 Aug 09 ) :

The sentiment has been very strong in the Indian equity market. Though occasional profit bookings have been taking place, those are not sustaining. Short covering at every fall has been restricting the market from witnessing a significant downside. Monsoon progress has been very worrisome and if this situation continues for the next 15 days there would be significant problems in terms of very poor agricultural production. This, in turn, will directly pull down the GDP estimates along with rise in food price inflation. On the other hand, consumer demand from rural and semi urban India is also likely to be impacted negatively. However, the current strength has been suggesting the market is probably not factoring in that kind of situation. Therefore, going forward, in the coming week, the market will closely watch the development in these areas. Overall, the movement is expected to remain choppy and both sided, due to uncertainties over short- medium term directions.

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