Indian equity markets, which have been going through one of their longest losing streaks in recent history, might see some respite during the week as domestic institutions accelerate their buying activity. Experts, however, say any upswing would be temporary as global sentiment remains extremely negative. The expiry of derivative contracts during the week would add to the volatility, they say.

According to provisional numbers, domestic institutional investors have net bought equity shares worth Rs 6,719 crore in the current month, even as their foreign counterparts have sold shares worth nearly Rs 9,000 crore. A section of analysts feels the recent correction has made equities an attractive proposition.

“The market is looking good at these levels as the final capitulation seems to have happened,” says Sandip Sabharwal, CEO-PMS, Prabhudas Lilladher. “This week’s closing could remain the lowest weekly closing in the next few months as the markets look oversold. Safety assets like gold and US Treasury bills look extremely overbought. And volatility indices in the US and Europe have spiked up. All these factors hint at a bottom formation,” explains Sabharwal. For more visit: Business Standard

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