ANI New Delhi

India's stock markets are being supported largely by consistent mutual fund investments, which are preventing a deeper fall despite heavy outflows, according to a report by Jefferies. The report said that without these inflows, the high level of supply in the market could have led to a collapse.

It stated, "Indian market will continue to trade sideways for the rest of the year as mutual fund inflows continue to absorb equity supply. Importantly, the supply is not expected to subside, barring a market collapse, with Jefferies' India office estimating USD 50-70bn of supply in the next 12 months".

The report noted that Indian markets are expected to trade sideways for the rest of the year as steady mutual fund inflows continue to absorb equity supply. In the first five months of the current fiscal year beginning April 1, mutual funds recorded inflows of USD 21 billion, including around USD 3 billion a month coming through SIPs. 

Gold may surge to record $6,600/oz

Gold prices could rise significantly higher to a record high of USD 6,600 per ounce if the ongoing bull run continues, according to a report by Jefferies. The firm said this projection is based on historical trends and the long-term methodology it has followed to track the yellow metal. The report pointed out that at the peak of the last major bull market in January 1980, gold was equal to 9.9 per cent of US disposable income per capita.