Indian Markets Next week July 7th 2008

 

We have seen highly volatile sessions this week because of internal and global factors. Left parties’ threat to withdraw support from the UPA government, on account of the Indo-US nuclear deal, continuous increasing in inflation figures and global factors like crude oil prices and US market recession caused the markets to fall freely for couple of days. There was some relief when left parties had given few days of time to clarify its position on approaching the IAEA for the safeguards agreement. Of course, Samajwadi party is ready to extend its support to Congress led UPA government if Left parties withdraw support. It’s a positive thing for the markets.

Inflation figures touched a new 13-year high of 11.63 per cent. Crude futures rose to an intraday record of $145.85 on Thursday before settling at a record finish of $145.29 US a barrel. July 4th is US Independence Day and markets are closed on the weekend day. The prediction of $150 per barrel did not come true but reached a near value. Oil prices are increased by more than 50% this year.

The two major global factors for the next few months are oil prices and inflation. Today’s surge in sensex may not be a signal for bull run as the above said two factors are still in question. We may see few more bloodbaths if oil prices won’t come down.

Sensex opened 33 points higher at 13,127. Nervousness in the early trades saw the index slip into red to a low of 13,028. Thereafter, Sensex rebounded into the positive zone and moved higher on the back of sustained buying in realty and capital goods stocks. The index touched a high of 13, before closing with a gain of 360 points at 13,454.

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July 4, 2008 | Filed Under Market Analysis 

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