Indian Markets Next week September 15th 2008

Last week Sensex started with a positive note following Nuclear Suppliers Group (NSG)’s nod to Indo-US nuclear deal without India signing the Nuclear Non-Proliferation treaty. It touched a high of 15,107 before falling down consecutively for four trading sessions. It touched a low of 13,934 and ended at 14,000. Sensex could not sustain the high levels despite lower inflation figures and higher IIP numbers.

Wholesale Price Index (WPI) based inflation dipped to 12.10 per cent for the week ended August 30 against 12.34 per cent for the week ended August 23rd. The manufacturing index number actually increased by 0.3% and is a cause for worry.

Spot Crude oil prices came down to $96 per barrel on account of strengthening dollar and week global economy. The rupee fell on Friday to a fresh 23 month low of 45.76/77, against the US currency.

Last week was a complete Steel meltdown on expectations of lower profits due to increased cost of raw material. Sensex constituent Sterlite industries down nearly 17% as the company proposed restructuring plans. Tata Steel and Sesa Goa are at year lows.

In the coming week there would be a relief rally with increased buying at lower levels. Don’t take long positions on any sector. Coming week would be a good opportunity to invest in and exit temporarily at the end of the month.

September 14, 2008 | Filed Under Market Analysis