The Hindu Business Line : Dull sentiment to prevail

According to market players, this is not unusual, but certainly buying by interest groups will continue during the week based on the build-up of expectation preceding the annual Budget.

According to a National Stock Exchange member, who simultaneously operates on the Delhi Stock Exchange (DSE), ``the market is expected to move sideways and one really doesn't expect much action. Investors are cautious and so are institutions.''

Brokers have a feeling that certain domestic financial institutions could possibly make some ``informed purchases'' in select sectors based on information available only to them. ``But FI transactions preceding the Budget traditionally remain investment buys and are unlikely to result in any major movement,'' he said. Though some fund managers had been bullish in their outlook for February, marketmen think otherwise. But the general feeling is that there might be some action in the PSU stocks slated for disinvestment in the near future because ``the Government seems to be acting tough and effectively pushing ahead with its disinvestment plans.''

According to Value Research, the firm which tracks the capital market and investments by mutual funds and financial institutions, the equities market will continue to remain dull while the bonds market may witness a downward trend.

``The equities market is headed for nowhere. Despite professional optimism indicated by all fund managers, the market remained range-bound and lacklustre,'' said Mr Dhirendra Kumar, Chief Executive of Value Research. As the Government was likely to announce a new auction next week, there could be a little downslide in bond prices compared to the recent past, Mr Kumar said.

Meanwhile, the book-building initial public offering from Bharti Tele-Ventures has been oversubscribed and its listing, due in end-February is a keenly awaited event. But retail investor interest in the scrip has been far below expectation. As a result, allotments will be higher than expected. This could get the retail investors some quick return after a very long period.

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