Worst not yet over for stock mkt, may fall further: Experts

The free-fall of the stock market is expected to continue in the coming week, with investors likely to reduce their exposure even further amid concerns over rising inflation and the volatile situation in Egypt, according to market experts.

The Bombay Stock Exchange benchmark Sensex, which plummeted by over 10.6% in the month of January, continued its southward journey in the first week of February, with the index shedding over 441 points in the last session on Friday.

"The investor sentiment was hammered by Prime Minister Manmohan Singh's statement that inflation posed a 'serious threat to the growth momentum'," Motilal Oswal Securities Associate Director Equities and Derivatives Manish Shah said.

The key index plunged by nearly 388 points, or 2.1%, during the week ended February 4 and analysts feel that the fall is likely to continue, as there is a dearth of positive news and buying on the street.

"Concerns over inflation and the crisis in Egypt will continue to haunt Dalal Street in the coming week. Rising global crude oil prices due to Egypt woes and fears of the possible spread of the political turmoil may compel investors to book profits even at the current low levels," Geojit BNP Paribas Financial Services Research Head Alex Mathews said.

However, market observers also feel the latest industrial growth numbers for the month of December, 2010, which are slated to be announced in the coming week, may give some respite to the market.

"Next week, the markets will be closely following the advance GDP estimates for the fiscal year 2011 and the latest IIP numbers," IIFL Head of Research Amar Ambani said.