Indian bourses are expected to remain highly volatile with a downward bias in the week ahead, but may see a positive opening on Monday after witnessing a steep fall last week, according to analysts.

“Markets will be highly volatile with a downward bias this week. A combination of global news on the euro zone crisis, currency fluctuation and foreign funds investment will determine the market trend through the week,” IIFL President – Retail Broking Prashanth Prabhakaran said.

Owing to all-round selling pressure triggered by negative industrial growth in October and a persistent sell-off by foreign funds, the BSE Sensex has shed 722.11 points during the past week.

Nevertheless, expressing a positive outlook, Bonanza Portfolio Senior Research Analyst Shanu Goel said, “Even though the medium to short-term trend has turned bearish for the market, some bounce-back can be expected in the next couple of days after a sharp fall in the market last week.”

Concerned over the economic slowdown, the Reserve Bank kept interest rates unchanged at its latest mid-quarter policy review on Friday and indicated that it could cut key policy rates from now onward to arrest falling growth, while keeping a close vigil on inflation.

The Indian rupee tumbled to a historic low of Rs 54.32 per US dollar during the past week on persistent demand for the American currency from banks and importers, though it rebounded sharply to end at Rs 52.70/71 per dollar after RBI intervention to ease volatility in the forex market.

For more visit: Business Standard

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