AUG 11 MONDAY

DALAL STREET LIKELY TO SUSTAIN CURRENT

BULL MOMENTUM.

CRUDE PRICES WATCHED CLOSELY.

The crude oil price fall since July 11, from

the all time high of $ 147 a Barrel has been

significant.The early impact of the fall

has been showing on the Indian Equity Market.

particularly in the last couple of weeks.

As the sentiment improved ,the short covering

boosted the valuation.This week , the trend is

likely to continue. Dalal street may draw support

from weakening crude oil prices and is likely to bet

on further decline in the prime commodity.

Last week the , the global markets , saw a major

sell off in resource stocks and commodities -

from crude oil to cocoa and copper - prompting some

analyst to officially declare the end hot commodity

rally and green back strengthened after the US Federal

Reserve Bank left intrest rates unchanged as widely

expected.

In the short term Dalal Street will attempt to factor in

the correction in the global commodities.However

a time lag in realising the impact on indian prices and

inflation will lead an element of volatility to the

equity market.

The liquidity flow to the indian market which has

dwindled can be expected to improve if a clear

direction in global financial and commodities

market emerges.