The market, which ended on a dismal note last week, is likely to see more weak spells in the coming week, as concerns about U.S. fiscal cliff and worries about Indian economy will continue to hurt sentiment and force the bulls to stay away on the sidelines.
Inflation declined a bit, but it still remains at quite uncomfortable levels. The Reserve Bank of India Governor's statement to that effect on Friday, raised doubts about a rate cut early next year and resulted in a sell-off in rate sensitive banking, automobile and realty stocks.
A rather tepid industrial output data and widening trade deficit are other areas of concern. The political sceneario is not encouraging as well. Under such circumstances, a significant turnaround in the near future is extremely unlikely.
The trend may continue next week as well. Though some bargain hunting is not ruled out, a sustained upmove will remain elusive. The reporting season is over and there are no big positive triggers in sight to warrant any strong buying. Investors will be looking for some stock specific stories to place a few bets.