Market trend to be determined by local sentimentsOur Web Bureau / Mumbai June 2, 2006Today's market is likely to be determined again by local sentiments and global market levels as the continuing concern over US interest rates have kept the global markets, especially the Asian ones, on their toes.The Indian market, which has led the falls during the global corrections over the past two weeks, have however failed to respond to moderate corrections, especially in the European and American markets."While initially the Indian investors, including both the retail as well as the mutual funds, were more or less immune from the sell-off fever of the FIIs, yesterday was an important day as far a change in attitude is concerned," said said Prakash Rajdev, chief dealer at Khandwala Securities."Any big correction tomorrow where the Nifty breaches the 2,900 level in the first two hours of trade can make the situation even more difficult," he pointed out.However, markets are increasingly taking their cues from neighbouring markets like the Hang Seng and the Korean Kospi, both of which slipped yesterday.Those who expected a reversal of the downtrend due to a recovery in the US markets overnight were proven wrong as, despite a strong opening yesterday, the gains could not be held.On the institutional front, Thursday's markets were again different from any in the recent times, as the fall was apparently not the result of FII selling as much as a reported pause in buying activity by mutual funds.FIIs sold only equity worth Rs 122 crore, against massive sell-offs of more than Rs 1,300 crore during some of the corrections in the immediate past. Even on Wednesday, when the markets were down 388 points, FIIs had sold nearly five times as much in the spot market.
