Mumbai: With little respite at sight from rising inflation and flaring global crude oil prices, Dalal Street is likely to remain sluggish this week, say analysts.
“The worst is not over yet... as fears of a global slowdown have not been put to rest, crude oil prices are a continuous threat, while on the domestic front, interest rates hikes and rise in inflation to a double digit figure can lead to a further correction,” Kejriwal Research and Investment Services director Arun Kejriwal said.
Maintaining its upward march, inflation for the week ended 31 May reached a seven-year high of 8.75%, amid apprehensions that the recent increase in prices would push it past 9% soon.
There is continuous sustained selling in the market which has to slowdown with some sought of buying coming in from investors to make the sentiments stable, Kejriwal said.
Last week, the BSE benchmark index Sensex had fallen below the psychological level of 15,000 during the week on increased selling, although it later managed to close above it. The index fell 60 points to close at 15,189.62 on Friday. Treading similar lines NSE index Nifty also had closed down 22 points at 4,517.10.
Meanwhile, Marketmen discounted any impact of reports of the fresh round of spat between the Ambani brothers on the shares of RCom and RIL to a great extent.
As per market reports, Anil Ambani’s group has charged Mukesh Ambani’s Reliance Industries of attempting to sabotage its potential deal to acquire South African telecom giant MTN.
“The revival of the Ambani siblings war may not impact the stocks much as they are already stagnant,” domestic brokerage firm SMC Global Vice President Rajesh Jain said.