Expect thin and volatile trade ahead of holidays December 23, 2008
Posted by dhirendra1972 in Domestic Institution, Domestic Mutual Funds, Foreign funds, Global Crude price, Global economic, Trading volume, Volatility.Tags: Cash, Economic, Equiteis, Foreign Institution, Fuel, Funds, Inflation, Shares
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Equities are seen volatile in a truncated trading week, as investors would shuffle trading positions in the run-up to the December series futures and options expirations on Wednesday. The possibility of dip in trading volumes due to a likely decline in foreign institutional participation on account of the Christmas and New Year celebrations, could add to the volatility.
In the likely absence of normal foreign fund activity, domestic institutions are expected to play a key role in determining the market direction. But it is unclear whether domestic mutual funds, which are still sitting on cash, would purchase aggressively at this juncture, as benchmark indices have rebounded almost 20% in the month, even though the global economic condition shows no signs of improvement.
Fund managers said they would purchase shares selectively as of now, but do not rule out another bout of selling, if indices rise another 5-7%.
Ref: thetimesofindia
