Markets Weekahead - Shares may remain volatile; flows, rupee eyed

Reuters Market Eye - Shares are expected to remain volatile next week ahead of the expiry of June derivative contracts on Thursday, with the focus on whether the rupee continues to hit record lows and foreign investors continue their selling streak.

Foreign institutional investors have sold cash shares for eight straight sessions, totalling 59.49 billion rupees, as per exchange and regulatory data.

The rupee will be closely watched as the currency may be pushed again towards 60 to the dollar if global riskoff rules next week. It hit a record low of 59.9850 on Thursday.

India will release the January-March quarter current account deficit data next week, a key indicator given that it has been a key reason behind the rupee's weakness and a concern to the central bank.

Traders are also warily watching Indian stocks with heavy foreign ownership as they are the ones expected to fall further should selling from overseas funds accelerate.

KEY FACTORS/EVENTS TO WATCH

Tuesday: Finance Minister P. Chidambaram at a Crisil event in New Delhi, SEBI board meeting

Wednesday: Money supply data

Thursday: Expiry of June derivatives, Annual meet of Housing Development Finance Corporation Ltd and Wipro Ltd

Friday: March quarter, last FY current account deficit data. Forex reserves, bank loan data.

(By Abhishek Vishnoi)