New Delhi, May 15 (PTI) The stock market is likely to be range-bound this week as investors weigh positive cues like declining food inflation and better-than-expected industrial growth against the recent hike in key short-term interest rates, say experts.
Market players said the short-term momentum is clearly negative for the market, as high interest rates are a significant damper for the overall sentiment.
"We have to wait and watch for commodities to decline and stabilise, IIP to rise and stabilise and inflation or interest rates pressure to ease and then markets can become more positive in the next 2-3 months," Mape Securities Senior Director (Research) Kislay Kanth said.
The market mood is likely to be vitiated by the government's decision to hike petrol prices by Rs 5 in New Delhi.