| Indian market continued the upward rally making new high for this year. The start of the week saw weakness. But for the rest of the days the undertone remained strong enough to take both the indices to touch their high since May 22, 2008. The movement on the higher side though remained cautious. During the week Nifty crossed a crucial psychological level of 5000.
On a week-on-week basis, the BSE Sensex gained 477 points or 2.9% to close at 16741.30. The S&P CNX Nifty ended at 4975.95, up 146 points or 3.0%. Most of the data published during the week in various countries remained favourable for the equities across the globe. In India however headline inflation for the week ended September 5, 2009 came back into the positive territory for the first time since late May, due to continuous increase in food prices. The FIIs data on the other hand remained supportive showing approx USD 9.1 billion inflow so far this year, with more than USD 700 million in this month alone till date. | |
| Ample liquidity across the globe has been the most important factor behind the recent upsurge in the market. However, the current rally has left out most of the participants as the run up has been too fast too far. At every downfall the market got support from the buyers. Last week the sentiment turned cautious when the Nifty touched 5000 mark, which has attracted some profit booking. Cautiousness also was heard in the voices of central bankers globally including the RBI in India. Inflation scenario is going to be one of the major concerns for the Indian market in the coming future. The time and strategy of exit from the current stimulus packages also would be very important for the stock markets worldwide, as it may put enormous pressure if there is no real economic recovery by then. Global markets may get some clues on this from the G-20 meeting, which is due in the later half of the coming week. Overall, the undertone seems to remain cautious for the holiday-shortened coming week with probability of some downward correction from the higher level. |
