Markets likely to be volatile, may stabilise around 11,000 level

Mumbai, May 20 (UNI) Seeing the carnage on the Dallal Street this week, no body would hazard a guess on markets when it opens on Monday.

However, the Finance Minister P Chidambaram discarded the possiblity of Long-term Capital Gains Tax, which will provide some relief to investors.

Also, reduced likelihood of Foreign Institutional Investors (FIIs) facing extra tax burden, will soothe market sentiments.

The performance of the global markets will also decide the fate of the Indian markets on Monday.

The markets will draw some strength from the progress of the monsoon in the coastal regions and in the Andaman and Nicobar islands.

The Mutual Funds sitting on large pile of cash is expected to make buying in the hugely corrected but fundamentally sound stocks.

The markets are expected to stabilise around 11,000 level next week after closing at 10,938 points on Friday.

However, experts feel volatility may continue on fears of rising inflation and expected hike in the interest rates.

Inflation rate climbed sharply to 3.96 per cent from 3.59 per cent during the previous week.

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