Sensex-Nifty end flat

The market appears to be shedding its apprehensive stance. Uncomfortable investors made Indian Stock indices under perform the global indices. Market men were rattled by a series of negative news. These were governance issues,sharp rise in inflation when everybody was preparing for a fall in prices and slowing down of growth in industrial production. The investors were unnerved by the response of the Government. However,the cabinet reshuffle and the raising of petrol prices without much fuss soothed the nerves.

The news from overseas has been better of late. Some of the troubled European nations could raise the requisite funds. Thanks to Japan. The economic news from US continues to be good. China has increased the reserve requirements four times in last three months. The impact on the liquidity was visible. The interest rates in the money market rose sharply in China. China with a fast growth in the fourth quarter and high inflation is likely to take steps to slow down the economy. This outlook forced the commodity speculators to liquidate their positions. The prices of commodities eased across a wide front. Importantly for India,crude slipped by more than two percent in a single day.

All is well that is what the investors heard from the results being announced. The results of Information Technology companies,Financial Services companies and Automobile companies seem to suggest that performance continues to be robust.

The market could manage to record a modest gain over the week. The market is expected to be volatile next week in view of expiry of derivative contracts due on 27th. The market would open on Monday under the influence of the results of Reliance Industries and State Bank of India. The market men would be smiling if the interest rate is hiked by 25 basis points by RBI in the credit policy due on 25th.

Avinash Gupta,Head-Equity,Bonanza