Domestic markets are likely to remain volatile in the coming week even as expectations of further liquidity infusion measures from the Reserve Bank of India could boost investor sentiment amid worsening global economic scenario, analysts believe.Even though declining inflationary pressure presents a reason to cheer, a falling rupee coupled with fears of protracted economic slowdown could keep the bourses on tenterhooks."Volatility is likely to continue in the Indian markets.If the Reserve Bank of India comes up with any guideline or some positive announcements in the US could provide a boost to the investor sentiments."Moreover, encouraging trends from the Asian and American markets could push the Indian bourses into the positive territory," Taurus Mutual Fund Managing Director R K Gupta said.With the Finance Minister P Chidambaram calling for more rate cuts, the apex bank is widely anticipated to make an announcement in the coming days.Meanwhile, Chidambaram in an interview to a private channel said, "The private sector banks should follow suit of public sector banks and cut their rates."In recent times, the flight of Foreign Institutional Investors (FIIs) from the domestic markets has been a cause of concern and has resulted in depreciating rupee. Till November 21 this calendar year, FII outflow reached Rs 53,476.90 crore."Indian markets are waiting for a good trigger. The valuations are attractive now and the banking stocks are likely to continue with its recovery on expectations of a possible rate cut," SMC Global Vice President Rajesh Jain said.
