Domestic bourses are likely to remain volatile this week tracking weak global cues amid developed countries,led by US,grappling with deteriorating economic conditions,say analysts.
“The market will remain range-bound as there would be a muted kind of an upside,” Ashika Stock Brokers Research Head Paras Bothra said,adding,”Even as the higher side remains capped,surprising events will knock the market down,even if it witness some rally.”
Market men said the Wall Street could be in the red for a longer period next week in the wake of gloomy US GDP data and soaring unemployment figures.
The world’s largest economy contracted 3.8 per cent in the fourth quarter of 2008,the most since 1982. The latest data showed that unemployed people receiving state aid touched a record high of 4.78 million for the week ending January 17.
Benchmark indices in US fell as much as two per cent to end the trading on Friday. Marketmen said investors would be mainly looking at developments in global markets. Buying would be restricted as any major trigger on the domestic front is unlikely,they added.
“Market would remain sideways as there is no major development at home. As global markets are not in tune with Indian markets,a drop there might cast some shadow on the performance here,” SMC Global Vice President Rajesh Jain said.