Sensex ends 3-day losing streak on Friday - Anand Rathi

The key domestic benchmarks rebounded on Friday as the Sensex ended a three-day losing streak, rallying by 345 points as inflation eased to a 43 month- low, leaving more scope for a rate cut by the RBI next week to boost growth in Asia's third biggest economy.

In spite of a stellar rally and a positive island reversal caused on Friday, the indices closed lower by about 1.30%, however a reversal from current levels cannot be ruled out.

On the Global front, Stock investors eager to hear from the Federal Reserve about its plans for continuing economic stimulus may get some soothing words from the US central bank next week. The Fed is unlikely to tip its hand about when it may begin to scale back its bond-buying program, but policymakers still may be inclined to try to tamp down recent volatility in financial markets with some mention of the issue.

On the European front, Central bank governors in Azerbaijan and Syria received kickbacks from the Austrian central bank's mint and money-printer in exchange for contracts, Vienna prosecutors said. Global regulators may start overseeing currency rates in a widening response to benchmark- rate setting scandals that began with revelations on the manipulation of Libor, two people familiar with the matter said.

On the Domestic front, Satisfied over easing of inflation, Planning Commission Deputy Chairman Montek Singh Ahluwalia today said that the Reserve Bank of India should take into account improvement in price situation while deciding on interest rate cut in its mid-quarter policy review on Monday to boost growth.

The headline inflation for May dropped to a 42-month low of 4.7 per cent, raising hopes of an interest rate cut by the Reserve Bank of India on Monday.

Source : Equity Bulls

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