Markets May Continue To Rally Next Week

Monsoon which did not play truant despite predictions helped boost sentiments on Dalal Street with the indices rallying for six straight days in a row.

Reliance Industries was one stock which stood out during the week and gained as much as 10 per cent. This was largely on the back of a series of upgrades by foreign brokerages which turned bullish after the company's 41st annual general body meeting.

The other stocks that helped lend support was Hindustan Unilever and Larsen and Toubro. Investors completely ignored the developments in Greece and continued to buy shares in India. However, Foreign Portfolio Investors continued to sell stocks, while domestic institutions continued their purchases. It was the large scale purchases by domestic institutions which boosted stock prices this week.

Hopes that the Monsoon would gather pace pushed speculators into buying. There was also some decent short covering after the sharp fall seen last month.

Going ahead the markets would continue to see buying interest, unless the Greece crisis takes a turn for the worst. The next two weeks could be crucial for Greece and unless there is a messy exit there, the Indian markets may continue to remain resilient.

After a good monsoon hopes are once again being raised on yet another interest rate cut from the Reserve Bank of India. How far that materializes remains to be seen.

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