By Sankalp Phartiyal and Ankush Arora
The benchmark BSE Sensex fell in three of five sessions this week, as higher crude prices hurt sentiment and the cabinet’s decision to delay a hike in gas prices disappointed investors. Caution also prevailed ahead of the June derivatives’ expiry on Thursday and fears of more violence in Iraq prompted investors to pare positions.
A Reuters poll on Thursday forecast the 30-share Sensex hitting 27,750 points by the end of December, following a brief correction after the budget.
For the week, the BSE Sensex ended 0.02 percent lower. Investors are now awaiting the new government’s first budget on July 10.
While investors remain hopeful of a pre-budget rally, the progress of the ongoing monsoon is key. Monsoon rains, which continue to be below average, are expected to revive early next month.
In its biannual Financial Stability Report on Thursday, the Reserve Bank said prospects of India’s economic recovery look bright following the formation of a stable government.