Markets to remain under pressure

Written by Markets Bureau | Mumbai | Updated: Dec 30 2008, 04:48am hrs
With Indian equity indices closing last week with huge losses, markets are expected to remain under pressure in the coming days as hopes of second stimulus package accelerates and tension between the India and Pakistan remains uninterrupted.

However, strong closing of US markets on Friday, last trading day of previous week, might have some positive impact on domestic markets when its opens on Monday. The benchmark, 30-share Sensex of Bombay Stock Exchange (BSE) lost around 770.99 points or 7.63% in last one week over the worries of global meltdown and expiry of derivatives contract or the month of December.

An analyst from the leading broking house said, This week we enter the new year and hope that we dont witness the pain we saw in 2008. However we also believe that quarter earnings are set to disappoint in a big way and we might notice further decline in the benchmark indices in the coming months. In the next week we will again see foreign institutional investors (FII) again entering the markets after the recent holidays.

On Friday, last trading day of previous week, the 30-share Sensex of Bombay Stock Exchange (BSE) was down by 239.80 points or 2.51% and closed the day at 9,328.92 points. The broader S&P CNX Nifty of National Stock Exchange (NSE) lost 59.60 pints or 2.04% to end the day at 2,857.25 points.

Amitabh Chakraborty, president-Equities at Religare Securities said, Markets are likely to remain uncertain in the coming days. There are also chances that we might see a cut in petrol and diesel prices in the coming week. With inflation coming down every week and announcement of stimulus package by the government in the coming day, might bring a mile on the faces on investors in the market.

Dealers in the market say, interest rate sensitive sectors like IT, realty and banking sector are likely to stay ahead as there are strong indications of cut in repo and reverse repo rate by the Reserve Bank of India (RBI) in the coming days.