Dalal Street is likely to remain range-bound this week in the absence of any major global trigger,but buying could be witnessed in oil & gas and IT stocks after the government’s move to raise fuel prices,analysts said.
“Except for an odd acquisition from Reliance and decision on the freeing of the petroleum products,the markets do not really have something tangible to look forward to,” according to brokerage firm Indiabulls Securities.
Last week,RIL entered into an agreement with US-based Pioneer Natural Resources,under which the country’s most valued firm will acquire 45 per cent stake in Pioneer’s Eagle Ford Shale acreage (largely undeveloped).
“The market is expected to remain in tight range,till the first quarter results of India Inc. Based on estimates of the advance tax,Q1 profits are likely to be robust,” Ashika Stock Brokers research head Paras Bothra said.
Analysts said buying could be witnessed in oil & gas and IT stocks,whereas rate-sensitives such as banking,realty and auto stocks may see selling pressure.
The government’s decision to raise fuel prices will stoke inflation,maintaining pressure on the Reserve Bank of India to tighten monetary policy.
“After rising smartly for the past few sessions,there is no fresh trigger as of now for the market to go upward.
Trading is expected to be range-bound this week,” Bonanza Portfolio’s Vice President (Equities) R L Narayanan said.
In the past week,the BSE’s benchmark Sensex rose sharply to hit a 10-week high at 17,919.62,but failed to stretch the gains till the end. The Sensex ended the week with mere 3.71 points,or 0.02 per cent gain.
Market experts said,stock specific actions will be more prominent in the coming sessions. Automobile and cement stocks will be in focus as companies announce sales volume data for the month of June,they said.
Heavy demand may be seen on RIL and RCom,which today announced a Rs 50,000-core deal to merge its telecom tower business with GTL infrastructure,a move that would help the ADAG firm cut its debts by more than half.
Investors will also closely watch progress of the monsoon rain,brokers said.
On the global front,deliberations at the Group of 20 leaders meet in Canada to discuss policies aimed at addressing Europe’s crisis,spur global growth and overhaul financial regulations could have a bearing on markets.