Indian shares to remain choppy
Monday, 10 November 2008
MUMBAI, Nov 9 (AFP): Indian shares are set to remain choppy this week, tracking global markets with expectations of positive news from the US after Barack Obama's historic presidential victory this week, dealers said.
Outgoing President George W. Bush and Obama are set to discuss the global economic crisis in their first post-election face-to-face talks tomorrow (Monday).
Economists are hoping that India's central bank will also take more steps to improve credit and boost liquidity into the system in coming weeks, after similar action from global central banks.
For the week to November 7, the benchmark 30-share Sensex index rose by 1.80 per cent or 176.23 points to 9,964.29.
The month of October was one of the worst in recent history as the Sensex fell over 20 per cent from a September 30 closing level of 12,860.43.
"The markets recovered from a weak opening on the strength shown by the European indices following the recent interest rate cuts," said Alex Mathew, head of research at brokerage Geojit Financial Services.
Dealers said investors would continue to track global trends, hoping that foreign fund inflows would improve.
So far in November, foreign funds are net buyers of Indian stock worth US$440 million.
The Reserve Bank of India cut its key lending rate last weekend and took other steps to spur economic growth and counter fallout from the global financial crisis.
Outgoing President George W. Bush and Obama are set to discuss the global economic crisis in their first post-election face-to-face talks tomorrow (Monday).
Economists are hoping that India's central bank will also take more steps to improve credit and boost liquidity into the system in coming weeks, after similar action from global central banks.
For the week to November 7, the benchmark 30-share Sensex index rose by 1.80 per cent or 176.23 points to 9,964.29.
The month of October was one of the worst in recent history as the Sensex fell over 20 per cent from a September 30 closing level of 12,860.43.
"The markets recovered from a weak opening on the strength shown by the European indices following the recent interest rate cuts," said Alex Mathew, head of research at brokerage Geojit Financial Services.
Dealers said investors would continue to track global trends, hoping that foreign fund inflows would improve.
So far in November, foreign funds are net buyers of Indian stock worth US$440 million.
The Reserve Bank of India cut its key lending rate last weekend and took other steps to spur economic growth and counter fallout from the global financial crisis.