Fund houses edgy about stock market

Domestic fund managers see the share market volatile during the next week even as debt remains comfortable. “The terrorist attack will keep the market volatile next week,” said R K Gupta, managing director, Taurus Mutual Fund.

For the last three days, Mumbai was under attack from terrorists at almost 11 places.

The attack is likely to impact the flow of foreign funds further as well as slow entry of new prospective foreign institutional investors (FIIs), they said. Shares of aviation companies are also seen weak on fears of flight cancellations after the terror attacks, fund managers said.

The hospitality and tourism sectors are also likely to face the heat. On the debt side, Parijat Agrawal, fixed income head, SBI Mutual Fund, expects the market to remain comfortable and easy.

The gross domestic product data that came according to market expectations are not likely to be a trigger for markets, fund managers said.

India’s July-September GDP growth was at 7.6 per cent against 9.3 per cent a year ago, and 7.9 per cent in the previous quarter. “The market will remain like this as there is not much depth to it,” he added.