Volatility to persist in mkts

Volatility to persist in mkts
The Financial Express, July 20, 2009, Page 4

fe Bureau, Mumbai

Indian equity indices witnessed a strong rally, last week following strong cues from the global markets and government announcement on initiatives on disinvestment, led the markets to close with huge gains. However, announcement of quarter results from various benchmark heavyweights and court hearing on Reliance Industries (RIL) and Reliance Natural Resources (RNRL) in the coming week, markets might remain volatile.

On Friday, last trading day of previous week, the 30-share Sensex of Bombay Stock Exchange (BSE) added 494.67 points, or 3.47%, to close at 14,744.92 points. The broader 50-share Nifty of National Stock Exchange (NSE) ended at 4374.95 points, up 3.39%, or 143.55 points.

Anita Gandhi, head of institutional at Arihant Capital market said, “Volatility is likely to remain in the markets, however, we might witness some upward rally. Apart from various announcement of quarter results in the coming week, will have some impact on the markets.”

The benchmark Sensex ended last week with a gain of 9.19%, while the Nifty rose 9.27%. Dealers in the market also added that, monsoon and foreign institutional investors (FII) will play the important role in the coming days.

“With the strong results of TCS on Friday, we might witness buying in the technology stocks on Monday. Also hearing on RIL-RNRL issue will have significant impact on the markets in the coming days,” added Gandhi.

In the month of July, FII have been net buyers at Rs 4,079.66 crore and domestic institutional investors (DII) have brought stock worth Rs 5,814.92 crore in July alone. However with flat closing of US markets on Friday, little impact will be seen in the domestic markets when it opens on Monday. “If Nifty can sustain the 4,400 mark then we can witness upward rally in the markets in the coming days. Apart from that, the major issue will be quarter results and performance of the FII’s which will lead the markets,” said and analyst from a leading broking house.