BSE Sensex set to rebound; but trade cautious

The BSE Sensex is set to rebound on Monday as reaction to the Dubai debt crisis moderates after many companies said they had only limited exposure and Asian stocks rose on hopes fallout from any default would be limited.



Dubai's debt crisis would not affect India much, but the government is keeping a close watch and will act to prevent any fallout, Finance Minister Pranab Mukherjee said on Saturday.



"We should see a bounce back considering the rebound in Asian markets," Ambareesh Baliga, vice-president of Karvy Stock Broking.



"But the upside could be limited, as we await more clarity on the situation," added Baliga.



The crisis began on Nov. 25 when Dubai asked to delay payment on billions of dollars of debt issued by conglomerate Dubai World and its main property subsidiary Nakheel.



Banks and real estate stocks, which were volatile on Friday, will be closely watched.



On Friday, the 30-share BSE index fell 1.3 percent to 16,632.01 rattled by Dubai's debt woes, but ended off lows as initial fears over its impact gave way to bargain hunting.



State-run explorer Oil & Natural Gas Corp will be in focus as Business Standard reported the company has found traces of a new oil reserve in western India which could increase its total onshore oil production by about 20 percent.

sirfpaisa.com

Sensex is the representative index of Bombay stock exchange.Today it closed on a negative note and was low by 91 points. To earn profitable returns from stock market it is required to have a good knowledge about market updates and movements.