Political developments to weigh on market through next week

Written by Markets Bureau | Mumbai, Jul 6 | Updated: Jul 8 2008, 03:34am hrs
The consistent rise in the crude prices and its subsequent impact on the price level (rate of inflation) dominated the Indian market for quite a some time now.

However, it is for the first time in the past several weeks that political developments at the Centre, and not the crude prices and inflation, will hold centre stage in deciding the course of the market during the next week.

Last week, the Sensex of Bombay Stock Exchange (BSE) had lost 348.22 points or 2.52% and closed at 13,454 points, while the S&P CNX Nifty of National Stock Exchange (NSE) had shed 120.65 points or 2.91% to close the week at 4,016 points. It was the seventh consecutive week that both the indices ended in negative territory.

The first half of the next week is expected to be crucial for the market as Prime Minister Manmohan Singh attends the G8 meeting in Japan on July 7 (Monday) and is scheduled to discuss the Indo-US nuclear deal with US President George Bush.

He will return on July 9, the day on which the Left will unveil its future strategy with respect to continuation of its outside support to the UPA government.