Indian stock to remain choppy
Sunday, 23 November 2008
MUMBAI, Nov 22 (AFP): Indian shares are likely to remain choppy next week, tracking global markets, with investors hoping the central bank will lower rates further as inflationary pressures ease, dealers said.
Reports that Citigroup is mulling auctioning off all or parts of the US financial giant, and a decision to delay a multi- billion dollar rescue for the crippled auto industry saw the US Dow Jones Index slip to a five-year-lows Thursday.
Locally, the markets are likely to remain volatile ahead of the monthly futures markets expiry next Thursday.
The markets will also keep an eye on the central bank, which is widely expected to lower interest rates in coming days, after inflation fell for the second straight week to 8.90 per cent Thursday.
For the week to November 21, the benchmark 30-share Sensex index fell by 5.01 per cent or 470.21 points to 8,915.21, a near- three-year-low.
"The strong closing Friday signals a firm opening next week," said P.K. Agarwal, head of research at financial services firm Bonanza Portfolio.
The benchmark Sensex rose 464.2 points or 5.49 per cent Friday, snapping a seven-day losing streak.
However dealers expect the gain to be short-lived and the markets may edge lower again if foreign funds continue to sell Indian equities heavily.
In November, foreign funds have sold equities worth US$331.6 million.
Reports that Citigroup is mulling auctioning off all or parts of the US financial giant, and a decision to delay a multi- billion dollar rescue for the crippled auto industry saw the US Dow Jones Index slip to a five-year-lows Thursday.
Locally, the markets are likely to remain volatile ahead of the monthly futures markets expiry next Thursday.
The markets will also keep an eye on the central bank, which is widely expected to lower interest rates in coming days, after inflation fell for the second straight week to 8.90 per cent Thursday.
For the week to November 21, the benchmark 30-share Sensex index fell by 5.01 per cent or 470.21 points to 8,915.21, a near- three-year-low.
"The strong closing Friday signals a firm opening next week," said P.K. Agarwal, head of research at financial services firm Bonanza Portfolio.
The benchmark Sensex rose 464.2 points or 5.49 per cent Friday, snapping a seven-day losing streak.
However dealers expect the gain to be short-lived and the markets may edge lower again if foreign funds continue to sell Indian equities heavily.
In November, foreign funds have sold equities worth US$331.6 million.