Uncertainty to persist in mkt

Written by Markets Bureau | Mumbai | Updated: Mar 10 2009, 04:34am hrs
Indian markets remained under pressure last week on the back of global uncertainty and weak cues from the global markets. If dealers are to be believed then Dalal Street is likely to remain uncertain in the coming week too, as there are no major domestic cues to lead the markets.

Dealers also say that, two day holiday on occasion of Id-e-Milad and holi in the coming week will keep the investors away from the market. On Friday, the last trading day of previous week, the 30-share Sensex of Bombay Stock Exchange (BSE) added 127.90 points or 1.56% to end the day at 8,325.82 points. The broader S&P CNX Nifty of National Stock Exchange (NSE) closed at 2,620.15 points up by 43.45 points or 1.69%.

However, during the last week the benchmark, Sensex shed 3.26% or 281.26 points, while Nifty was down by 2.08% or 54.45 points. Analysts attribute these losses to weak cues and intense selling from the retail as well as foreign institutional investors (FII).

An analyst from the leading broking house said, Despite the rate cut by the central bank and inflation coming down to 3.03%, domestic markets did no react positively. Next week, we have two day holiday, so the retail participation will be less.

Some of the analysts believe that Indian bourses will look to the west for the cues in the coming week. In the past dew trading session we have been looking at FIIs continuous selling and till that stops we assume that markets will continue to do badly. There are quite few chances that, markets might even witness October lows soon.

Some dealers say that, there are chances that we might see markets at around 7,000 levels and that will be the right time to start investing in the equity markets. So for some time now, domestic market will remain in the range-bound manner.