Indian stock markets may continue to grind near the 31,000 levels, as domestic institutions would continue to support the market on every fall. This is because most of the domestic institutions are flush with funds, while some selling pressure might emerge from Foreign Portfolio Investors.

This week we saw some modest losses in the Sensex on a weekly basis as the US Fed raised interest rates and investors were willing to sell into the market on every rally. On Monday the market began on a weak note amidst selling pressure, while it gained on Tuesday and Wednesday, while there was some serious selling pressure in Nifty stocks on Thursday. Overall, because of the sharp fall on Thursday, the markets ended the week lower.

Stars in trade this week were the pharma stocks with Aurobindo Pharma gaining almost 8 per cent in trade this week, after getting approval for a kidney drug from the US FDA. Lupin on the other hand lost ground after not having got approval for the same drug. Other pharma stocks also saw some action. Reliance Industries also gained after reports that it was set to develop gas fields.

PSU Banking stocks like Bank of Baroda and Union Bank were among the losers in trade this week, as investors worried on the haircuts that banks would take and its impact on profitability.

In the coming week, there are not too many cues as investors would now wait for the quarter ending June results to unfold. Infosys is likely to kick-start the earnings season in the second week of July and the markets may take cues from there.

In international developments the Greece debt saga of the last few days ended with reports that Greece has agreed on a bailout deal with its lenders. This is good news for international markets and some positive reaction was seen in stock prices in the global markets.

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