'Mkt may remain volatile on intl, domestic cues' | business | Hindustan Times
Today in New Delhi, India
Jan 23, 2017-Monday
New Delhi
  • Humidity
  • Wind

'Mkt may remain volatile on intl, domestic cues'

business Updated: Feb 03, 2008 18:16 IST
Highlight Story

Dalal Street may continue to be volatile in the week ahead as market movements are likely to be driven by global cues as well as domestic factors such as government proposal for a minimum of 25 per cent public holding for listed firms, analysts say.

The markets might witness an upheaval following the government proposal for a mandatory public holding of a minimum 25 per cent for listed firms. Close to 300 companies, including blue chips like Reliance Petroleum, TCS, Wipro and DLF as well as PSUs such as NTPC, MMTC, NMDC, Indian Oil and SAIL face the prospect of getting delisted if the government's proposal is implemented.

According to the proposed amendments, the promoters, the company and the management would be liable for conforming to this requirement, failing which necessary enforcement action, including delisting, may be taken. The government has sought comments on the proposals by February 28.

Analysts also believe market sentiments would continue to remain affected by situations in the global markets.

"Uncertainty is likely to persist till any clarity on the international issues is reached ... Markets are likely to remain volatile as they are totally aligned to the global situations," brokerage firm SMC Global Vice-President Rakesh Jain said.

Although all triggers for the markets have been discounted for, Microsoft's bid for Yahoo gave a positive nudge to the US market on Friday, which could also have a similar effect on the domestic market, Jain added.