Mkts to remain lacklustre ahead of RBI meet: Analysts
Stock markets may continue to remain lacklustre in the coming days as investors await the RBI policy meet and inflation data for May, which will be declared this week, say experts.business Updated: Jun 12, 2011 11:32 IST
Stock markets may continue to remain lacklustre in the coming days as investors await the RBI policy meet and inflation data for May, which will be declared this week, say experts.
The markets have witnessed a lull over the past few days, with the key indices hovering in a narrow range.
Moreover, a dip in factory output in April, measured by Index of Industrial Production, and rise in food inflation for the last week of May have also affected the market sentiment.
"The key Indian indices may continue to remain lacklustre amid lack of interest among the traders as well as investors. The recent trend of light trading volumes underscores a general lack of participation for the time being", said IIFL (India Private Clients) Head of Research Amar Ambani.
On the market expectations ahead, Ambani said, "The RBI could boost rates by 25 basis points on June 16 as inflation continues to be sticky."
Further, brokers tell any positive global event may also act as a trigger for the market.
Last week, the US markets declined following a bleak assessment of the country's economy by the US Federal Reserve Chairman Ben Bernanke. Europe continued to be haunted by the sovereign debt problems amid speculation about the fiscal health of Greece.
This also contributed to the sluggish stocks movement at home, with investors concerned about tepid FII inflows in the market. Crucial market benchmark Sensex on Friday lost 107.94 points, or 0.59% at 18,268.54.
Auto, metal and banking sectors witnessed maximum selling pressure last week.
"Auto stocks were among the major losers after an industry body said the domestic car sales had grown by a modest 7%, sparking concerns of a slowdown in the sector. Maruti was a big loser due to a week-long strike at its Manesar plant," IIFL said in a note.
Two-wheeler major Hero Honda Motors plunged by over 7% on concerns that the strike by workers of Maruti Suzuki India's plant at Manesar could spread across the auto belt of the northern state. Maruti shares fell by 0.31% during the week.