D-Street to remain volatile on weak global cues: analysts

D-Street to remain volatile on weak global cues: analysts
PTI
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First Published: Sun, Feb 22 2009. 11 09 AM IST
Updated: Sun, Feb 22 2009. 11 10 AM IST
Mumbai: With no major announcement expected on the domestic front, Dalal Street is likely to be volatile, reflecting a downside bias, following weak global cues next week, analysts say.
“The market will mostly be on a downward spiral and the phase of uncertainty is likely to continue as the US and other world markets are in a bear grip,” Taurus Mutual Fund Managing Director R K Gupta said.
However, analysts are upbeat that some policy measures in the form of interest rate cut might bring some upswing in the market.
“Interest rate cut would give a knee-jerk reaction to the otherwise bearish market. However, it will not be able to sustain the gains for longer term amid subdued world market,” SMC Global vice president Rajesh Jain said.
“World markets are collapsing and not responding to any form of stimulus. Although our market is trying to move up but world markets are dragging it down as there is as government announcements here do not have a prolonged impact,” he added.
The Bombay Stock Exchange benchmark Sensex witnessed the worst weekly loss since October 2008, sliding as much as 8%. The index, which has lost 792 points in a week, had dipped by 199.42 points to 8,843.21 on Friday.
Marketmen said the US government plans to nationalise Citigroup and Bank of America has further dampened investor sentiment worldwide.
On Friday, the US market tumbled with the Dow Jones Industrial Average plunging to its 11-year low to settle at 7,365.67 points after dipping 100.28 points and the Standard & Poor’s 500 Index dipped 8.89 points to 770.05. Besides, other Asian markets also closed in the negative terrain.
Analysts, however, are keeping their fingers crossed as they feel that heavy sell-offs witnessed by the market last week might bring in some short-covering next week.
The Indian stock market would remain closed on Monday on account of Mahashivratri. Marketmen were hopeful that a day less in the week and futures and options contracts scheduled to expire on 26 February might give a positive push to the market.
“The market would look for triggers but it is impossible for it to find a direction until May, when the corporate houses come out with their quarterly figures,” Gupta added.
During the week, FIIs have offloaded shares worth Rs1,725 crore in the Indian equities. They have been net sellers of Rs5,426 crore so far this year.
Besides, the WPI-based inflation dipped to a 13-month low of 3.92% for the week ended 7 February.
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First Published: Sun, Feb 22 2009. 11 09 AM IST
More Topics: Market | Outlook | Dalal Street | Stocks | BSE |