Geopolitical situation in South Asia could weigh down the sentiments on the market in the coming week after former Pakistani Prime Minister Benazir Bhutto's assassination on Thursday, 27 December 2007. Stock markets around the world weakened and oil prices rose after the assassination in nuclear-armed Pakistan increased geopolitical uncertainties, with investors shifting money into safe-haven assets such as gold and bonds. However, the Indian market ended flat on Friday, 28 December 2007, shrugging off geopolitical concerns.
Stock specific activity may rule the roost based on expectations regarding Q3 December 2007 results of the companies. IT bellwether Infosys Technologies will announce results on 11 January 2007.
Rising oil also can play a spoilsport for the markets as it is nearing $100 mark. Oil rose for a fifth day to $97 a barrel on Friday, within sight of its record high after US crude stocks fell more sharply than expected, and geopolitical tensions mounted in Pakistan and northern Iraq. Also US government data showed US crude oil stockpiles fell to their lowest level since January 2005 last week.
FIIs were net buyers of Rs 3,494.20 crore in equities so far in the month of December 2007, till 26 December 2007. FIIs had sold equities worth Rs 5,849.90 crore in the month of November 2007 after heavy purchases in September 2007 and October 2007.
Annual inflation, based on the wholesale price index (WPI), dipped to 3.45% in the week ended 15 December 2007 from 3.65% in the week ended 8 December 2007. The market estimate stood at 3.65%