Volatility dominated Indian equity indices last week on the back of week global cues and intense selling by the foreign institutional investors (FII). Lack of any major trigger on the home front, may make the domestic markets look West and at its Asian counterparts for the direction next week and stocks are likely to remain under pressure in the coming days.
US markets closed last week on negative terrain which might have negative impact on Indian equity markets next week, said a dealer. On Friday, 30-share DJIA ended marginally lower at 11,421.99 points, down by 11.72 points or 0.10%, while Nasdaq Composite managed to end the day on positive terrain at 3.05 points or 0.14% and closed the day at 2,261.27 points.
Arpit Agrawal, head research at Arihant Capital Market said, ?Last week we saw some intense selling from the FII and weak cues from the US markets, the overall sentiments of the markets are negative. We assume that markets are likely to consolidate in the coming days, as global crude prices and inflation are easing down. But in the coming, volatility will hover on the Indian markets in the coming days as there are no positive triggers to push the markets.?
On Friday, last trading day of the previous week, Sensex was down by 323.48 points or 2.26% and had closed the day at 14,000.81 points. The broader S&P CNX nifty of National Stock Exchange (NSE) lost 61.85 points or 1.44% and finally ended the week on 4,228.45 points.
Dealer from a leading broking houses said, ?US Index of Industrial Production numbers which is due on Monday, might also impact the markets. The volatility in the markets is going to continue, we might see fresh inflows in the markets by October. However, we might see inflation again coming down in the next week also, which might have some much needed relief in the markets.?