Thursday, January 3, 2008

Markets to scale new peaks in '08: Analysts

The Dalal Street is expected to start the New Year on a positive note and scale new peaks in the next 12 months, despite situations in global Markets remaining uncertain, analysts say.

They predict 2008 would be a promising and bullish sentiments will prevail throughout the year along with some corrections due to local and global cues.

"The first half of 2008 is going to be positive driven by robust third quarter results of corporates and expectations of a good budget by the Finance Minister, while the benchmark index Sensex is likely to scale milestones this year," Asika Stock Brokers' Paras Bodhra said.

But the market is likely to witness correction bouts during the next half, as situations in global Markets remain uncertain and the picture may deteriorate if the crude prices touch 100 dollar a barrel mark, Bodhra added.

Oil rose for a fifth day to 97 dollar a barrel on Friday, within sight of its record high after US crude stocks fell more sharply than expected.

The benchmark index Sensex gained over 44 per cent between January to December in 2007. It closed at 20,206.95 points on Friday, ending flat on concerns of the geopolitical situation in the continent following the assassination of former Pakistan Prime Minister Benazir Bhutto.

In January 2007, the index was at 13,900 levels, while on December 28 it settled at 20,206.95 points. As last trading day of 2007 still remains, analysts believe stocks could rally on Monday and enter the new year on a positive note.

"It is a rosy picture in 2008, despite some hiccups as volatility will continue driven by global cues," domestic brokerage SMC Global Vice President Rajesh Jain said.

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