Fundmen foresee rangebound run

Fund managers see the equity market range-bound next week with a negative bias in the absence of any positive trigger.

The market will watch global crude oil prices, hike in domestic petrol and diesel prices and liquidity position, they said. The debt market will be range-bound ahead of announcement of credit policy on April 28, they said.

Speaking on the direction of equity market, U R Rao, head-equity funds, Canbank Mutual, said, "The market is looking sideways next week. It is looking neutral with negative bias. It may not go up further. The major result (January-Mar quarter) season is almost over except Reliance Industries. The market will need positive triggers in order to rise further."

"In absence of any positive triggers, the market is likely to trade in 5900-6300 range," Rao said.

The Indian equity market will watch global markets, crude oil prices and hike in domestic petrol and diesel prices and liquidity conditions next week, Rao said.

Rao is bullish on technology, infrastructure, textile, sugar and pharmaceutical sector related companies.

"Some technology companies have reported good results. So, there would be buying in select counters next week. Textile and sugar sectors are good. The future for pharmaceutical companies looks good," Rao said.

Rao is bearish on metal sector. "I think one should move out of metal now," he said.

Sethuram Iyer, chief investment officer, SBI Mutual said, "The market would be range-bound next week. It would move 100 points up or down."

Speaking on the direction of debt market next week, Sandesh Kirkire, chief investment officer, debt funds, Kotak Mutual said, "It would be volatile ahead of credit policy. Until the direction of interest rates is clear, the market will not be bullish.

Reserve Bank of India's chairman Y V Reddy will announce the credit policy for 2005-06 on April 28.

Kirkire expects the yield on the 10-year benchmark, 7.38 per cent, 2015 to trade above 7 per cent next week due to concerns over interest rates and hike oil prices. "The market will not be bullish till credit policy and clarity on oil prices emerge," Kirkire said.

Thursday, the yield on 7.38 per cent, 2015 gilt closed at 7.06 per cent, flat versus Wednesday.

Iyer of SBI Mutual sees the debt market range-bound next week. "The market will be range-bound till credit polity announcements."

Earlier, key indices registered nearly 1 per cent gains Friday, but were off their day's highs. The rally, particularly in information technology shares, was fired by Wipro's robust March quarter results. Also, overnight gains in the US markets and a firm trend in the Asian bourses on Friday aided the sentiment.

Dealers attributed Friday's gains to short-covering and fresh buying in select shares. Dealers said Wipro's results have revived the interest in IT shares and various brokerages are now giving a 'buy' rating to them.

The market breadth was positive, with 63 per cent of the shares in the Bombay Stock Exchange's 'A' group and 69 per cent in 'B1' group ending in positive territory.