New Delhi : After smart gains of the past two weeks, the stock market is likely to see some profit-booking this week amid investors tracking crucial data on inflation and industrial production, analysts said.
The RBI is scheduled to announce its mid-quarter monetary policy review on December 18.
“After gaining more than 4.5 per cent in last two weeks, the Sensex is likely to witness some profit-booking,” said Rakesh Goyal, Vice President at Bonanza Portfolio. Several important bills are likely to be taken up by Parliament for clearance during the ongoing Winter Session including Companies Bill, Competition Bill and FDI in insurance and pension sectors.
“Buying is seen in almost all sectors which is positive for the coming sessions. However, economic data such as inflation and IIP (Index of Industrial Production) as well as probability of interest rate cuts by RBI this month shall have near term impact on market sentiment,” he added.
Overseas investors have made net investments of $ 1.2 billion in the Indian equity market during the first week of the month, taking the total for 2012 so far to a whopping $21 billion.
During December 3-7, Foreign Institutional Investors (FIIs) were gross buyers of shares worth Rs 20,314 crore and sellers of equities worth Rs 14,167 crore — translating into a net inflow of Rs 6,147 crore ($1.2 billion), according to Sebi data. This takes the net investment by FIIs to $20.9 billion so far in 2012, making it the second highest net inflow in a single calendar year since their entry into Indian markets in 1992. On global front, the market is also waiting the two-day meeting of the Federal Open Market Committee on interest rates in the US on December 11-12. — PTI