The Hindu Business Line : Volumes likely to move up

While foreign institutions were unlikely to buy aggressively even at this level, selling by domestic institutions could stop after Tuesday, a BSE broker dealing with institutions said.

THE market is unlikely to witness any major development on the price front during the coming week, but there is a general feeling that the overall volumes may go up.

Marketmen say that a few counters in the old economy sector that were hitherto unnoticed will go up in revised valuation during the week. But most steel stocks seem to be very close to the saturation point, they say.

According to a senior Bombay Stock Exchange broker, the Sensex, which lost around 81 points in the past week, may settle with nominal gains by the week-end. "The position is not strong. On Monday and Tuesday, there will be more selling after which there may be upward corrections," he said.

While foreign institutions were unlikely to buy aggressively even at this level, selling by domestic institutions could stop after Tuesday, a BSE broker dealing with institutions said.

According to an analyst with J.J. Investment and Finance, which operates on the National Stock Exchange, with generally low investor confidence and no positive factor in sight in the near future, no significant change in the market could be expected in the coming week.

According to him, with UTI cash flows not coming into liquid funds, at best one may expect prices to slightly improve by mid week and finally, the Sensex may settle between the 3,200-3,300-level.

According to another analyst working with the Industrial Development Bank of India, though there is no increase in political tensions, there are no positive signals also. More than the negative impact of political developments, it is the absence of positive developments that is dampening the market.

Marketmen across the board point out that though the fear of an imminent war with Pakistan no longer seems to be a possibility, everyone continues to talk about it. "This is taking its toll on investor sentiment. One may understand the stand taken by the foreign institutional investors in this regard, but the behaviour of domestic institutions is not quite explainable," he said.

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Volumes likely to move up