Domestic indices to see a volatile week

Mumbai, Sep 9: Nothwithstanding the strong fundamentals inherent in the Indian economy, domestic indices are expected to see a volatile week, as the first meeting of the UPA-Left committee on the Indo-US nuclear deal is likely to take place this week.

The meeting date is speculated to be somewhere between Sept 10 to 14. The government had put on hold the operationalisation of the nuclear deal pending the findings of a committee constituted to go into the objections raised by the Left parties, analysts said and added that a lot will also depend on how global markets pan out. Of late, local market have been closely tracking movements in global markets.

Market pundits pointed out that caution will prevail in the global markets ahead of the US Federal Reserve meeting scheduled to be held on September 18, wherein there might be an interest-rate cut.

It may be recalled here that local indices posted third straight gain for the week ended September 7. BSE Sensex rose 271.82 points or 1.77 per cent to 15,590.42 while the NSE S&P CNX Nifty rose 45.5 points or 1.01 per cent to 4,518.60.

''Foreign Institutional Investors (FIIs) have been on a buying drive recently. They bought shares worth a net Rs 2,191.60 crore in four trading sessions from September 3 to 6, mutual funds were net buyers worth Rs 353.80 crore in equity market during four trading sessions during the same period.

UNI