The Hindu Business Line : D-Street woes may continue, to follow global cues: Analysts

MUMBAI: As the financial crisis continues to send tremors across the world, Dalal Street is likely to suffer more pain this week and will closely follow the direction taken by global markets, say analysts.

With the credit crisis worsening in Europe and the US and spreading to Asia, domestic market suffered one of its worst trading periods last as the benchmark index Sensex lost over 1,200 points.

The Sensex settled at 10,527.85 points, down 800 points on Friday.

“Choppiness is likely to continue this week. We may see some relief rallies as the market has been oversold in the past week... However, the market direction depends completely on how the US market performs,” domestic brokerage firm SMC Global Vice Presi dent, Mr Rajesh Jain said.

In view of the adverse implications of the global financial meltdown on the Indian economy, the Reserve Bank on Friday slashed the mandatory deposit that banks keep with it by another one per cent, taking the total CRR cut to 150 basis points.

The RBI's a move would inject a total of Rs 60,000 crore in the financial market and help in improving the liquidity condition.

However, analysts believe the domestic measures will not help the market sentiments much as they depend more on the situation in global markets and would bounce back once conditions improve. - PTI

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