Monday November 2, 03:20 AM

Source: Indian Express Finance

Volatility to persist in markets

By fe Bureaus
Indian equity indices which remained under pressure and volatile last week is likely to continue its southbound journey in the coming days also. With results season almost complete and lack of any major cues from the domestic front, markets are likely to look at global cues and inflows from the foreign funds for some trigger. US markets, which closed in deep red on Friday, might also have impact on the benchmark indices in the coming week. However, Indian markets will remain close on Monday on occasion of Gurunanak Jayanti. In last week, the 30-share Sensex (^BSESN : 16632.01 -222.92) of Bombay Stock Exchange (BSE) lost over 914 points or 5.44%, while the broader S&P CNX Nifty (^NSEI : 4941.75 -63.8) of National Stock Exchange (NSE) shed 285 points or 5.71%, on the back of sustain selling pressure in banking and realty sector. Mehul Dedhia, associate vice-president at Sharekhan said, There are no major cues in the market in the coming days, as two major events like monetary policy of Reserve Bank of India (RBI) and expiry of October derivatives contract has already gone. With no major cues in the markets, there are strong chances that markets are likely to witness a fall in the coming days. On Friday last trading day of previous week, Sensex was down by 156.44 points or 0.97% to close the day below the 16K mark at 15,896.28 points, while Nifty lost 38.85 points or 0.82% to end the day at 4,711.70 points. Last week. RBI kept its key rates unchanged in its second quarter review of monetary policy and downfall was seen in the markets. Though, RBI tightened statutory liquidity ratio (SLR) by 100 basis point to 25%. SLR is the portion of deposits that banks are required to keep in government securities. Despite huge selling from the foreign institutional investors (FII) in the last few days, they had turned net buyers on Friday and had bought stocks worth Rs 576.05 crore, while domestic institutional investors (DII) bought stocks worth Rs 592.93 crore on Friday. Overall in the month of October, FII bought stocks worth Rs 0.38 crore, while DII were net sellers at Rs 3.16 crore.