New Delhi: Stock market may see continued buying but the overall sentiment may remain cautious as the government may hike fuel prices this week, say experts. (Agencies)
"We expect continued buying in the market after the end of the fourth quarter results. The most positive factor is that progress of monsoon is as per the schedule.
However, given that confidence levels are still low, a keenly awaited event will be the government meeting on June 9 for changes to oil and gas price," said Motilal Oswal Securities Associate VP Senior Analyst Technical Equities Parag Doctor.
Analysts said the government decision on raising fuel prices can act as a hindrance to the market movement. Further, a host of other factors can influence the sentiment in the near future.
"RBI mid-quarter review on June 16, EGoM on fuel prices on June 9, April IIP data and May inflation would be the key events that could have a bearing on the direction of the markets in the coming days," said IIFL Head of Research (India Private Clients) Amar Ambani.
They said increase in FII inflows provided some relief to the market last week and hoped the trend will continue in the near-term, even as the macro-economic backdrop remains challenging as underscored by the poor GDP data for the March quarter of last fiscal.
Foreign Institutional Investors (FIIs) were net buyers last week and bought shares worth Rs 2,365.56 crore, taking the total to Rs 4,023.26 crore in seven straight sessions since May 26, including the provisional data of June 3.
The BSE benchmark index Sensex settled 110.38 points high at 18,376.48 on Friday.
Analysts said the market will have to deal with headwinds like high oil prices and rising interest rate in the coming days.
New Delhi: Stock market may see continued buying but the overall sentiment may remain cautious as the government may hike fuel prices this week, say experts.