Domestic market sentiments, already hit by rising inflation and interest rates and a withdrawal of funds by foreign institutional investors (FIIs), now have a a new worry to deal with — the unrest in Egypt that has the potential to jack up oil prices.
The Sensex of the Bombay Stock Exchange (BSE) on Monday fell sharply by 357 points in early trade, before recovering to close at 18,327 — a fall of 68 points or 0.4%. The index has fallen 10.6% in January.
The unrest in Egypt spooked markets worldwide and most Asian and European markets ended in the red.Real estate continued to be the biggest loser on the Sensex as the BSE realty index fell by 2.2%.
While equity investors are likely to get nervous about the state of their investments, the markets may throw up some good investment opportunity, analysts said. “Another correction of 5% or so will certainly make the Indian market attractive from a medium to long-term perspective,” said Amar Ambani, research head, India Infoline.