Indian share prices are likely to remain rangebound next week as trading volumes could weaken on lower purchases from overseas funds due to year-end holidays, dealers said. For the week to December 21, the Mumbai stock exchange's benchmark 30-share Sensex index fell by 4.33 percent or 868.46 points to 19,162.37.
The Sensex slipped off its record close of 20,375.87 on December 12, on persistent credit concerns and expectations of no further rate cuts by the US Federal Reserve due to rising inflation.
Dealers said selling pressure was seen in index and mid-cap stocks. They said the markets could remain rangebound until early January, awaiting signals on fresh overseas inflows to emerging markets like India, to boost sentiment.
The US Federal Reserve's move to cut interest rates by 25 basis points in its last meeting on December 11, failed to boost investor confidence on the US economic scenario.
"The markets could be rangebound due to the festive season," said Manoj Kakaiya, dealer with brokerage ULJK Securities. At Friday's level, India's stock markets have risen 38.9 percent this year led by overseas fund flows of 16.2 billion dollars for the year.