The week could see the markets remain range-bound; Swapnil Suvarna recommends SIP as the antidote to market uncertainties
Last week we expected the domestic markets to remain subdued with some moments of sharp volatility due to F&O expiry, but the major indices ended the week on a higher note. Sensex and Nifty ended the week at 18,763 and 5627, up 522 and 156 points respectively from last week’s close.
The week started off on a positive note following the government’s decision to raise fuel price to reduce the subsidy bill and weakness in global oil prices followed by decline in food inflation to a one-and-a-half month low of 7.78% for the week ended 18th June. The domestic markets gained further momentum after the Greek parliament cleared austerity measures, making way for a new financial bailout for the debt-ridden European nation.
Week Ahead
We expect the domestic market to remain range-bound next week. Foreign institutional inflow will be a crucial determinant. Also the start of Q1-FY12 corporate earnings season should buoy the market sentiment this month.
We suggest your investors to remain cautious during this week. SIPs in well performing equity schemes is the best way to beat the short term uncertainties.
