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Zee biz 9 may 2010 Dalal street likely to remain under pressure

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"There are a lot of pressure points in market and after a recent rally that has taken the equity markets ahead of their valuations a correction was due. In the coming period, we will see downward trading," SMC Capitals Equity Head Jagannadham Thunuguntla said.

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Zee biz 9 may 2010 Dalal street likely to remain under pressure

  1. 1. Dalal Street likely to remain under pressure: Analysts 9 May 2010, 1611 hrs IST,PTI NEW DELHI: Dalal Street is likely to see a subdued trade this week in the absence of any positive trigger from domestic front and on weak cues from global markets, analysts have said. "Investor sentiment is low at this moment following the debt crisis in Europe that has spooked markets across the globe. The domestic market has been under pressure in past few trades and in coming days also the trend is likely to continue," Bonanza Portfolio Assistant VP (Research- Equity) Avinash Gupta said. Analysts said that as of now there is no big trigger for the market to move upside and negative cues from across the globe are dominating the sentiments. "There are a lot of pressure points in market and after a recent rally that has taken the equity markets ahead of their valuations a correction was due. In the coming period, we will see downward trading," SMC Capitals Equity Head Jagannadham Thunuguntla said. In the past week, the Sensex shed 4.5 per cent and Nifty 4.9 per cent and traded in the negative zone in all five sessions. Indices corrected in line with global cues. The correction was led by metals and capital goods. FIIs have been significant net sellers in the cash market over the last few days. "Global market movements will be important from a short term perspective and for the time being all global markets have entered into a correction mode. The correction has been quite swift and some pull back cannot be ruled out," Unicon Financial said in research note. Analysts also said that the movement at the RIL counter will be a key factor for market in the coming week after the Supreme Court passed its verdict in favour of Mukesh Ambani- controlled RIL in a gas dispute with RNRL. Reliance Industries Ltd holds the maximum weight in the pack of blue-chip stocks. "RIL counter will be stable, while stocks belonging to the Anil Dhirubhai Ambani Group may see pressure," Gupta said. Last week, giving its verdict on the four-year-old battle between RIL and Anil Ambani-led RNRL, a three-judge bench of the Supreme Court said the Ambani family MoU dividing the gas was not binding, both legally as well as technically.
  2. 2. The SC ruled that the government has the last word on pricing and utilisation of the national asset. Post ruling, shares of Anil Ambani-owned RNRL tanked nearly 27 per cent on the BSE, while RIL climbed about 5 per cent on Friday. On the global front, all world indices reacted to Greece debt crisis and ended down by 5-8 per cent in the past week. The US markets closed lower with the Dow Industrials dropping by about 6 per cent with high volatility in index. In Asia, both Hangseng and Nikkei were down by nearly 6 per cent.

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