'Indian indices may see profit booking this week'

Indian stock indices, which posted their first weekly fall this year, may see some more profit booking in the coming days on renewed worries over rising global oil prices, say analysts.

Weighed down by profit taking, the BSE benchmark Sensex broke seven-week winning spree, tumbling 366 points to finish below the 18,000 mark in view of concerns over rising crude oil prices and higher fiscal deficit. Higher oil prices hit investor sentiment as it could weigh heavily on inflation, and hold RBI from lowering lending rates, marketmen said. Brent crude touched 9-month high of over US$ 124 a barrel.

“Stock market can see some more selling pressure this week as rising global crude oil prices raises concerns that the RBI may not go for a rate cut,” Geojit BNP Paribas Research Head, Alex Matthews said.

The markets might go into some consolidation for sometime before moving up and the correction that has started after a strong rally in the last few weeks should be used by investors as buying opportunity, analysts said.

The Indian stock markets have been attracting lot of FII inflows during the last few weeks. FIIs continued with the buying spree last week and pumped in Rs 11,793.70 crore, including provisional figure of February 24, as against Rs 4,754.20 crore last week.

“After a strong rally in the last few weeks, we required a correction. And this is exactly what is happening right now and it will continue for a little while longer,” said COO Way2Wealth Brokers, Ambareesh Baliga.

Investors will also closely watch the G-20 meeting over the weekend and the US jobs data that will be announced on Friday.