The market is expected to consolidate this week as concerns over low rainfall dampen investor sentiment and keep the market under pressure. Analysts say the market will remain range-bound as it looks for a positive trigger with the possibility of a drought-like situation in the country. While some positive bias is possible, the market may focus on rainfall with the delayed monsoon creating uncertainty. Signs of recovery in the US and European economies could provide some positive influence, but the potential impact of drought in India remains a concern holding back confidence.

1. D-Street may inch towards consolidation: Analysts
Sunday, August 16, 2009, 12:03 IST
Mumbai: A wave of consolidation is likely to greet Dalal Street this week as concerns over
rainfall shortage would pull down investor sentiments and keep the market under pressure,
analysts said. "The market would remain range-bound and would look for a positive trigger
amid the dampening effect on the possibility of a drought-like situation in the country,"
Ashika Stock Brokers Research Head Paras Bothra said.
Analysts also said there might be some positive bias in the movement of the market but
absence of any major trigger might shift focus on the rain God. "Delayed monsoon has
made the market totally indecisive of the next move.
The impact of drought would be felt in some time from now and that is holding back
investor confidence to enter market," SMC Capitals Equity head Jagannadham
Thunguntla said. Besides, with the US economy showing signs of revival and Germany
and France emerging out of the recession quicker than expected, analysts feel it could bring
in a positive bias in the market.
"As it is now a known fact that the major economies are pulling themselves out of the
recession, I do not foresee any major collapse in the market in near term as it is all positive
news around," Bothra added. The BSE Sensex gained 251 points, or 1.66 percent in the
past week and closed at 15,411.63 points.