Uncertainty to persist in markets

Written by Markets Bureau | Mumbai | Updated: Jan 20 2009, 04:49am hrs
Indian markets which are under pressure for the past few session are likely to continue to remain unstable in the coming days. However, global events like the swearing in of Barack Obama as the President of the US and national events like quarterly results, are likely to impact the domestic markets in a big-way.

Dealers in the market say, last week we saw huge rally in the Reliance stocks and there are strong rumours in the market that, soon RIL-RNRL case will be solved. An analyst on the condition of anonymity said, This week we will witness hearing in the RIL-RNRL case and there are rumours that very soon, it might even get its verdict. Investors, while, may hope to see a upward rally, most of them in the back as they fear that the worst is probably yet to come.

Moreover, there are a spate of result annoucements to be made in the week ahead. market players will be looking at the index pivotal Reliance Industries the most again. Others like Wipro and HDFC will also be watched closely for emetgings trends ahead.

Last week, the benchmark indices ended with marginal losses as Satyam scam continued to haunt the investors followed by Nortel which has gone public with its bankruptcy petition impacted the IT stocks in the Dalal Street.

An analyst from the leading broking house said, Next week is going to be very a crucial week as more important results starts pouring in and one of the important will be of Wipro, which is scheduled on January 19. Also after Barrack Obamas swearing in as the President of the US, there might be some expectation that he might announce a bail-out package.

On Friday, last trading day of previous week, the 30-share Sensex of Bombay Stock Exchange (BSE) closed at 9,323.59 points gaining 276.85 points or 3.06%. The broader S&P CNX Nifty of National Stock Exchange (NSE) added 91.75 pints or 3.35% and ended the day at 2,828.45 points.

However, strong closing in the US markets on Friday, will also have some positive impact on the markets, when its opens on Monday. Markets are likely to remain volatile and witness a short-term upward rally, yet the long-term view in the Indian markets till remain pessimistic.