Indian shares to track global trends, industrial output data
India's stock market are likely to consolidate further, tracking global market trends and local manufacturing data next week, dealers said.Updated: Sep 05, 2009, 22:25 IST
India's stock market are likely to consolidate further, tracking global market trends and local manufacturing data next week, dealers said.
For the week to September 4, the benchmark 30-share Sensex index fell 1.46 per cent, or 233.22 points, to 15,689.12.
"The markets are in a consolidation mode. There is still lack of clarity on the global economic recovery," said Bhaskar Kapadia, partner at brokerage Pyramid Securities.
Investors will next week await key industrial production output data for July, which could determine near-term trends and indicate if the worst is over for India.
Economic data released last month showed industrial production jumped by 7.8 per cent in June from a year earlier -- its quickest pace in 16 months.
The markets will also track monsoon activity, hoping for a revival in rainfall which is running at 26 per cent below normal, its lowest in at least seven years.
There are fears that the weak rains, which have hurt crops, could affect rural consumption, a key growth driver, in the country where 700 million people live in the countryside.
Of India's 626 districts, 44 per cent have been declared drought-affected.
Earlier this week, India's government said the economy grew by 6.1 per cent in the three months to June, picking up pace from the previous quarter and signalling the country's emergence from the global downturn.
The expansion, spurred by government stimulus packages and aggressive monetary easing that has made loans cheaper, was up from 5.8 percent growth in the March quarter.
Foreign funds have bought equities worth 8.13 billion dollars so far this year after selling shares worth 6.64 billion dollars during the same period last year.