Uptrend may continue

The market will be eyeing the 14,000-mark in the coming week, betting on robust economic growth and strong results for December quarter from Indian companies. The domestic economy grew 9.2% in the July-September quarter from a year earlier, higher than market expectations of 8.90%.

Investors will continue to build fresh positions following a smooth rollover from November contracts to December series.

Expectations run high that FIIs may step up buying this month as allocations will be made for New Year calendar 2007. FII inflow in 2006 has reached $8.7 billion compared to a record inflow of $10.7 billion in 2005.

However, profit-booking can emerge at higher levels. The Sensex is already up 47.3% in calendar 2006 so far. A section of the market attributes the solid surge on the Indian bourses to increasing recognition of India’s long-term growth prospects. India’s growth drivers are a favourable demography (large share of young population), robust domestic consumption and acceleration in infrastructure creation.

Also the crawling crude oil prices, which are near $62 per barrel, may put brakes on the rally.

Dhampur Sugar Mills and Pioneer Embroideries will announce their results in the coming week.