Indian shares to reach new highs
Sunday, 15 July 2007
MUMBAI, July 14 (AFP): Indian share prices may hit a fresh record next week on strong demand for global equities after the benchmark 30-share Sensex index surged past the 15,000 points level Friday, dealers said.
Indian shares rose 308.6 points or 2.06 per cent to close the week at 15,272.72, the first time the index closed above the 15,000 points level.
The Sensex has now risen 4.20 per cent in the past fortnight.
"The markets saw another week of strong gains at the 15,000 points level. Global and local fund buying is strong and we could see the markets hitting a new high soon," said Advait Date, a dealer with brokerage BHH Securities.
Dealers said automobile, infrastructure and property stocks could gain further as concerns of a local interest rate hike eased.
Analysts do not expect India's central bank to hike rates despite higher inflation data recorded for two straight weeks.
Inflation rose to 4.27 per cent per cent for the week ended June 30, from 4.13 per cent a week earlier, but was lower than its two-year high of 6.73 per cent in February this year.
"There is a strong case for rates to remain unchanged with inflation and loan growth slowing down in recent months," said Rajeev Malik, Asian economist with J P Morgan Chase Bank, based in Singapore.
India's central bank will review monetary policy on July 31.
Analysts said Infosys earnings data this week were broadly in line with expectations, despite a cut in its full-year earnings forecast.
Indian shares rose 308.6 points or 2.06 per cent to close the week at 15,272.72, the first time the index closed above the 15,000 points level.
The Sensex has now risen 4.20 per cent in the past fortnight.
"The markets saw another week of strong gains at the 15,000 points level. Global and local fund buying is strong and we could see the markets hitting a new high soon," said Advait Date, a dealer with brokerage BHH Securities.
Dealers said automobile, infrastructure and property stocks could gain further as concerns of a local interest rate hike eased.
Analysts do not expect India's central bank to hike rates despite higher inflation data recorded for two straight weeks.
Inflation rose to 4.27 per cent per cent for the week ended June 30, from 4.13 per cent a week earlier, but was lower than its two-year high of 6.73 per cent in February this year.
"There is a strong case for rates to remain unchanged with inflation and loan growth slowing down in recent months," said Rajeev Malik, Asian economist with J P Morgan Chase Bank, based in Singapore.
India's central bank will review monetary policy on July 31.
Analysts said Infosys earnings data this week were broadly in line with expectations, despite a cut in its full-year earnings forecast.