MUMBAI: Equities are expected to open higher tracking positive global
cues and as crude prices retreated from record highs.
Cautious investors keenly await key inflation data is forecast to have
risen 7.77 percent in the 12 months to May 10, slightly below a 7.83
percent rise a week earlier, which was the biggest rise since November
6, 2004. But economists say the actual rate may be closer to nine per
cent due to sharp upward revisions in provisional readings recently.
"The market is in a consolidation mode. The biggest worry that is
haunting investors is the relentless rise of crude oil prices. The
government has to consider raising petrol and diesel prices among
other measures to bailout state run OMCs that have been reeling under
unprecedented high crude prices. But if any move is made in that
direction, it will add to inflationary pressures," said Siddharth
Purohit, analyst at Latin Manharlal Securities.
US stocks rose modestly on Thursday after two days of steep declines
after an unexpected drop in jobless claims and the retreat in oil
prices spurred optimism that the economy can avoid a recession.
Asian stocks edged higher on Friday, helped by a slight dip in oil
prices from record highs and positive cues from Wall Street. The
Nikkei rose 1 per cent, Straits Times climbed 0.13 per cent while Hang
Seng slipped 0.62 per cent.
US light crude for July delivery was up 24 cents at $131.05 a barrel,
having surged to $135.09 on Thursday, before traders took profits and
sent the contract settling down by more than $2 to $130.81, the first
time in five sessions that it settled lower.
Back home, stocks remained under pressure Thursday faced with negative
global cues. Bombay Stock Exchange's Sensex closed at 16,907.11, down
336.05 points or 1.95 per cent. The 30-share index swung over 240
points between intra-day high of 17,104.59 and low of 16,863.38.
National Stock Exchange's Nifty declined 92.20 points or 1.80 per cent
down to close at 5025.45. It touched a high of 5118.90 and low of
5010.70.
Foreign institutional investors turned net sellers of equity worth Rs
537.35 crore while mutual funds net bought Rs 415.16 crore of equity,
according to provisional data on NSE.
Source : Economic Times
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