Indian share prices could edge back next week after the benchmark 30-share Sensex index went past the 15,000 points level on Friday for the first time, dealers said.
Dealers said buying sentiment improved on sustained interest in capital goods, engineering and software stocks against a backdrop of fast-paced economic growth in the South Asian economy.
They said the markets showed buoyancy after India's inflation rate remained at a 14-month low, easing pressure for further interest rate hikes. They added buying momentum picked up with the Sensex hitting intraday record highs each day this week. Indian shares rose 313.61 points or 2.14 percent to close the week at 14,964.12 from the previous week's close of 14,650.51.
The markets ignored inflation, which rose marginally to 4.13 for the week ended June 23, from 4.03 percent the week earlier.
The latest figure was still comfortably within the central bank's medium-term inflation target of 4.0 to 4.15 percent, fuelling the view that India's central bank could leave interest rates unchanged when it meets later this month.
"The markets could ease marginally from here simply on profit-booking. Earnings data will be closely watched, though we do not expect major surprises," said Hiten Mehta, a fund manager at Fortune Financial Services.
Comments
Comments are closed for this article.