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.