Indian shares are seen trading firm, underpinned by softer oil prices and upbeat world markets, as investors await fresh funds in local equities, dealers said. They said a firm close Friday signalled a positive opening this week as investors take their cue from easier crude oil prices. "Oil prices are largely steady below the crucial 50 dollars mark at the moment which is good as new money can enter the market," said Prakash Lala, managing director at Centaur Capital Markets. For the week to May 20, the Mumbai Stock Exchange's 30-share benchmark Sensex index closed at 6,499.50, down 42.04 points from the previous week's close.
New York's main contract, light sweet crude for delivery in June, rose 49 cents to 47.41 dollars per barrel in electronic deals on Friday.
It closed at 46.92 the day before, the lowest close since February 9.
"In the last few weeks, foreign funds have virtually stopped investing and hopes are the trend will be reversed soon given stable world economic factors," Lala said.
Foreign funds have invested around 3.51 billion dollars between January and April, but in the last few weeks inflows have slowed. In 2003 and 2004 the market rose sharply driven by foreign inflows.
In 2004 foreigners pumped 8.5 billion dollars into Indian stocks, the most since the country began liberalising its economy in 1991.
Dealers said strong quarterly results from Indian companies have also kept the sentiment positive and poised for a near-term rally.
"Most developed markets are peaking while emerging markets are catching up with them. I think the trend will be firm for regional markets, including India, in the near term," added Lala.
Dealers said the pricing of the American Depository Shares of software giant Infosys will help set the tone for the market in the early part of the week.
Infosys, India's second-largest software exporter, closed Thursday the sale of 16 million shares or two percent of its total shares outstanding on Nasdaq.
On Friday Infosys closed up 2.09 percent or 43.95 rupees at 2,142.45.
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