MUMBAI: India’s stock market could consolidate next week after a run-up in share prices driven by hopes for international economic recovery, dealers said.
For the week to August 28, the benchmark 30-share Sensex index rose 4.47 percent, or 681.51 points, to 15,922.34.
“The markets have risen in recent days. We are at key technical levels... so we expect a small correction,” said Bhaskar Kapadia, partner at brokerage Pyramid Securities. Investors and fund managers will be guided by first-quarter gross domestic production figures for the fiscal year to March 2010 that are due Monday, dealers said.
The markets will also track monsoon activity, hoping for a revival in rainfall which is running at 26 percent below normal, its lowest in at least seven years.
There are fears that the weak rains, which have hurt crop planting, could affect rural consumption, a key growth driver, in the country where 700 million people live in the countryside.
Foreign funds have bought equities worth $8.09 billion so far this year after selling shares worth 6.88 billion dollars during the same period last year. afp
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