Indian markets remain range-bound amidst industrial under-performance, rise in food inflation and political turmoil. Much depends on the RBI’s monetary policy review this week
The Indian markets stayed range-bound finally drifting downwards ending the week on a negative note on back of the dismal industrial numbers for April. Overall the week ended with the Sensex and the Nifty settling at 18269 and 5486 levels, down 108 points and 31 points from Friday 3 June 2011 close.
During the week, the one percentage hike in food inflation numbers and political worries following reports that the DMK may opt to withdraw ministers from the cabinet, put pressure on market sentiment.
Next week, the entire focus will be on the Reserve Bank of India's (RBI) mid-quarter policy review. The declining industrial data will put some pressure on the RBI’s monetary policy to delay possible rate hikes.
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