After last week’s fall, the Indian equity market managed to close the week ended June 26, 2009 with a gain of almost 1.5%. It remained choppy and saw range bound movement almost throughout the previous week to finally give a positive break out in Friday’s trade. The benchmark indices closed in the green in three out of five trading sessions. On a week-on-week basis, the BSE Sensex closed 243 points higher to close at 14764.64. The S&P CNX Nifty ended at 4375.50, higher by about 62 points. FII inflow in June 2009 totalled Rs 2,964 crore (until June 24, 2009). FII inflow in calendar year 2009 totalled Rs 24,283.40 crore (until June 24, 2009).
The volatility in the market for the last few weeks has been suggesting that participants are worried about the direction of the market. This has lead to some profit booking at higher levels. On the other hand, we saw short covering on the downside. Also, domestic funds seem to be putting in money resisting the sharp fall. The market could be volatile ahead of the presentation of the Union Budget 2009-2010 on July 6, 2009. The Railway Budget will be presented on July 3, 2009. Investors will also closely watch the progress of India’s annual monsoon.