Markets Sustain Important Levels this Week

Saturday, April 26, 2008 | | |

hrugging off concerns over rising inflation and a hike in the Cash Reserve Ratio, the Bombay Stock Exchange benchmark Sensex gained 4.0 per cent to recapture the psychologically important 17K peak in the week, largely driven by robust earnings by frontline stocks.

In the week to April 26, the BSE barometer advanced by another 644.78 points or 3.91 per cent to end the week at 17,125.98 from its last weekend's close of 16,481.20.

The broader 50-share S&P CNX Nifty of the National Stock Exchange also spurted by 153.30 points or 3.09 per cent to close the week at 5,111.70 from its last weekend's close.

Investors looked optimistic over the prospect of capital inflows into Indian equity markets after key corporates came out with encouraging fourth quarter financial results and global markets showed signs of recovery, providing bourses a major trigger.

The marketwide rollover of nearly 82 per cent to May series is also seen as a bullish factor by marketmen.

Global stocks are expected to move upwards as world's largest economy showed signs of resilence after an ecnouraging US jobs and manufacturing data this week.

Analysts said the outlook for the market is good as some some frontline companies such as Reliance Communications, Hindustan Unilever, Reliance Energy and ICICI Bank will unveil financial results next week.

The Reserve Bank of India's annual monetary policy review on April 29 and the US Federal Reserve meeting at month-end also is expected to play a crucial role in determining the market direction, they added.

Analysts foresee a possibility of a rate hike at home, while they do not rule out a rate cut by the Federal Reserve.