8:31 AM
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Indian shares may come under further selling pressure
coming week, as fears of a Greek default and gloomy outlook for the US economy
continue to weigh on investor sentiment.
India’s key stock market indices – Sensex and Nifty —
lost around 4.5 per cent each last week, tracking a global stock market rout,
as investors across the world shunned risk and moved towards safer assets.
“There are no signs that the market has bottomed out yet,
In the short term, it will depend on how global developments impact flows from
foreign institutional investors (FIIs).” FIIs sold Indian shares worth `2,585
crore in the last two trading sessions, provisional data on the Bombay Stock
Exchange (BSE) website showed, after the US Federal Reserve gave a bleak outlook
for the US economy and the euro zone debt crisis escalated with talks of a
possible Greek default gaining pace.
Volatility is expected to rise as traders roll over
positions on expiry of September derivatives contracts on Thursday. Investors
will also closely monitor the rupee, which last week slumped to its lowest
level against the dollar in more than 28 months. The currency ended at `49.43 a
dollar on Friday, after hitting a low of 49.89 during the day’s trade.
Indian equity funds saw outflows for the 20th time in the
past 21 weeks during the week ended September 21, according to EPFR Global,
which tracks fund flows into world markets.
Overseas investors, with purchases to the tune of `1,564
crore, were still net buyers of Indian shares in this year so far, Securities
and Exchange Board of India (Sebi) data showed.
“The problems in the euro zone are not going to get
solved soon,” “Investors should not be in a hurry to buy. They should preserve
cash and wait for better opportunities.