As the financial crisis continues to send tremors across the world, Dalal Street is likely to suffer more pain this week and will closely follow the direction taken by global markets, say analysts.
With the credit crisis worsening in Europe and the US and spreading to Asia, domestic market suffered one of its worst trading periods last week. The Sensex settled at 10,527.85 points, down 800 points on Friday.
“Choppiness is likely to continue this week,” said Rajesh Jain, vice president of domestic brokerage firm SMC Global.
“We may see some relief rallies as the market has been oversold in the past week. However, the market direction depends completely on how the US market performs.”
“After 8-10 days some stabilisation might creep in the global markets which would have a positive effect on the Indian bourses,” said PK Agarwal president, research, Bonanza Portfolio. “Once normalcy returns globally, domestic stocks will show a fast recovery as we are fundamentally strong.”