Market Tunes Into FM In Mumbai

Mumbai, May 30 | Updated: May 31 2004, 05:30am hrs
Finance minister P Chidambarams upcoming two-day visit to Mumbai this week will be crucial for the stock market - the outcome will decide the direction the bourses will take from here on, feel market players.

The 30-share BSE Sensex lost 126.18 points or 2.54 per cent to 4,835.39 while the broader 50-share S&P CNX Nifty ended lower at 1,508.75, down 51.45 points or 3.3 per cent during the trading week ended Friday last.

The FM is expected to meet banking and capital market regulators. His meeting with the top brass of the Reserve Bank (RBI) and the Securities and Exchange Board of India (Sebi) where he is expected to take stock of the current state of the market is being viewed as significant by market players.

The FMs meeting with the heads of foreign funds is expected to clear the air about the avoidance of double taxation treaty.

Said Rajesh Jain, CEO of Pranav Securities: Sentiment in the market is negative at the moment. It is expected to open on a weak note on Monday. The FM has to make some sharp policy announcements to improve the markets.

Added Shashi Krishnan, CIO of Cholamandalam Asset Management Company: The markets will be extremely event-led during the week, as people are looking to the budget. That is the only major event coming up. Apart from that, for the immediate week, the markets will not register too much of a change and there is a possibility of a very brief rally.

Dealers too do not rule out a small amount of relief rally on the bourses during the week.