Indian equity market remained choppy and saw range bound movement almost throughout the previous week. Direction less trading was observed during most of the trading sessions. On a week-on-week basis, the BSE Sensex gained 210 points or 2.4% to close at 8966.68, whereas, the S&P CNX Nifty ended at 2807.05, up by 88 points or 3.2%. Foreign Institutional Investors (FII) were net buyers in four trading sessions from March 13, 2009 to March 18, 2009. They still remain net sellers in this month. Also, during the week INR touched an all time high of almost 52 per USD. IMF mean while has cut India’s GDP growth for FY09 and FY10.
In the last week failure of the market to capitalize on the strong gains that were observed during the preceding week is indicating that we may be near to the present upward move. Overall undertone in the broader market still remains cautious and the recent gains were viewed as short-term recovery only. Annual inflation growth is likely to come down further and eventually may slip into the negative territory in the coming weeks. Market will have a close eye on the developments in the political front before the election and that might have some short-term impact too. Overall, the market is likely to remain range bound and should see choppy price movement with a slightly negative bias at least during the first half of the coming week.