Indian share prices may gain further next week, pinning hopes on the US Federal Reserve's decision on interest rates at its meeting, dealers said. They said the markets will remain choppy at higher levels but could surge if the US Federal Reserve decides to lower interest rates.
For the week to December 7, the Mumbai stock exchange's benchmark 30-share Sensex index rose 3.11 percent or 602.81 points to close at 19,966. The Sensex crossed the 20,000 points level this week - after more than a month - but slipped on profit booking.
The Sensex's record close is 19,977.67 on October 29.
"The markets will track the US Federal Reserve's move next week, expecting more inflows into emerging markets if rates are cut," said Hiten Mehta, a fund manager with Fortune Financial Services.
The US Federal Reserve meets on December 11 to decide on monetary policy.
Analysts expect the central bank to cut rates by a quarter point from the current level of 4.50 percent amid fears of a slowing US economy.
At Friday's level, India's stock markets have risen 44.81 percent this year led by overseas fund flows in excess of 16 billion dollars for the year. Global equity research Citigroup in a latest report said it was revising India's earnings growth estimates for the year ending March 2008.
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