Indian share prices are expected to be range-bound next week as Asian markets remain wary after the US Federal Reserve lowered growth projections, dealers said. They said the markets could be volatile in the near-term and a sharp run is not expected in the coming weeks.
For the week to November 23, the Mumbai stock exchange's benchmark 30-share Sensex index fell 4.29 percent or 845.49 points to close at 18,852.87. "The markets will await all US-related news on credit concerns and the US Federal Reserves moves in coming weeks," said Manoj Kakaiya, dealer with ULJK Securities.
The US Fed is set to meet on December 11 to decide on monetary policy, where analysts expect the central bank to keep rates unchanged at 4.75 percent. At Friday's level, India's stock markets have risen 36.74 percent this year, led by record overseas fund flows, in excess of 17 billion dollars.
Global bank J P Morgan Securities said that Indian equities could show a strong medium-term trend. "Over the medium-term, sustained inflows to the equity market and an upward trajectory for foreign investment should more than offset the widening current account deficit, leading to the possibility of continued INR appreciation," J P Morgan said in an Asia-Pacific equity outlook report to its clients.
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