Markets started the week on a positive note with Sensex rising 305 points or 1.7% to close at 17,876.55 on Monday on positive global cues due to China announcing that it will take measures to make yuan float more freely against dollar and other foreign currencies (Click here for MB update).

After that, index moved in a range bound manner for the next three days. However, on Friday, markets were on a correction mode and were negative since the beginning ahead of the Empowered Group of Ministers’ (EGoM) meeting on fuel prices. In the afternoon, after the decision regarding freeing the prices was announced (Click here for MB update), markets moved deeper into red and closed the day at 17,574.5, 155 points down from Thursday’s close.

On a weekly basis, this was a change of 4 points on Sensex.

Derivatives contract for June series expired on Thursday which has been taken as positve for the markets on the basis of roll over of open positions.

Foreign funds have been net investors in the market. So far this month,foreign funds have been net buyers of around $1.7 billion of Indian stocks against being sellers of about $ 2 billion in May. Index has gained 3.7% in the month till now.

Decision to free oil prices has again sprked concerns regarding rate rise, even before the next policy announcement, which might way on the sentiments and pull the index down for next week.

Author:Praveen Bajaj