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Markets likely to be cautious and subdued next week

Mumbai, Mar 24 (UNI) Volatility will be back next week with the clearing of the Future&Options (F&O) positions in the derivatives market.

Also with the financial year closing next week, profit booking may become sharper to meet the tax related demands.

Metal sector may see profit booking after more than seven per cent rise this week.

As far as the foreign fund inflow is concerned the investors will be cautious as the foreign institutional investors (FIIs) have been booking profits and haven't been investing that generously as before.

The inflow of fund seemed to be slowing down for the second week in row at Rs 686.80 crore during the last first four trading days of the week.

On Thursday the net inflow dipped to Rs 56.30 crore only, which will have a negative impact on the markets when it opens on Monday.

Crude Oil prices were again on the boil touching a high of USD63 to 64 per barrel in the New York Mercantile Exchange(NYMEX) which will also keep the equity markets cautious.

Markets will be also waiting for the fourth quarter results (Q4) starting April 1 and hence may not be much enthusiatic about investing now.

Moreover, after Sensex crossing 11,000 mark, the equity markets have no immediate targets to achieve and could remain subdued.

It was for the fifth successive week that markets closed higher but the foreign investors mood seemed to be changing for the worse. The inflow of funds from foreign institutional investors (FIIs) in the equity markets seemed to be slowing down for the second week in a row at Rs 686.80 crore in the last first four trading days of this week.

On Thursday, the net inflow dipped to Rs 56.30 crore which will have a negative impact on the markets when it opens on Monday.

Steel Authority of India registered a rise of 24 per cent or Rs 14.80 as it climbed to Rs 80.85 from Monday's opening at Rs 66.05 this week. SAIL on Friday had gained by 10.68 per cent closing at Rs 80.85.

Jet Airways share price hit the air pocket this week in the wake of uncertainty over its takeover of Air Sahara deal. Jet stock dipped to Rs 919.15 on Wednesday, close to the 52-week low of Rs 891.15 but it reovered later to close on Friday at Rs 948.55.

Sector-wise metal company stocks were in the limelight this week registering a gain of around eight per cent.

Tiles manufacuting major Nitco Tiles made debuted on the stock markets on Tuesday, opening at a premium of around seven per cent at Rs 180 against the issue price of Rs 168 for Rs 10 share on the NSE and at Rs 172 on the BSE.

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