Moved by strong IIP numbers last week, Sensex continued its upward journey, rising 273 points on the first day of the week. Equity markets almost ignored the high inflation number.
The buoyancy continued for the week and markets touched a high of 17,616 on Thursday, its highest since April 27. This was the 7th consecutive day of positive close on Sensex. However on Friday, being dragged by the Reliance group stocks, markets slipped 46 points.
For the week as a whole, index rose to 17,570.82, rising 2.96% or 505 points over last week’s close. Factors driving markets were positive cues from European front and better than anticipated advance tax payment by the companies.
Foreign funds inflow has been good in the market with FIIs buying stocks worth $773 million of India equities so far in June against a selling of $ 2 billion in May. Markets have risen 3.7% so far in June.
Having risen 950 points in last 10 days, I expect markets to trade with a positive bias but at the same time chances of correction cannot be ruled out. 2 risk factors which might pull breaks are negative developments on European front and concerns of interest rate hike by RBI.