Uncertainty stares Street

After a relatively calm previous week, volatile trading awaits Dalal Street.

"The yo-yo movement in the markets will continue for some more time. At the moment, retail investors are not participating in the market. The volumes are also lighter," said Gagan Banga of Indiabulls Financial Services, a leading domestic brokerage.

Last week brought some level of calmness back to the market compared with the previous week. However, volatility amid speculations on the survival of the Manmohan Singh government saw the market swinging. Last week, on two days, the market moved contrary to the activities of foreign institutional investors (FIIs).

For instance, FIIs were net sellers for Rs 275 crore on Friday, but the BSE Sensex ended higher by 260.89 points (1.84 per cent) to 14,424.87.

Similarly on Thursday, when the Sensex slipped 84.71 points, the FIIs were net buyers for Rs 275 crore.

Key data from the US such as the figures for existing home sales in July and preliminary figures on second-quarter gross domestic product, which will give an indication on its economic health, will also have a bearing on the domestic markets.

There are worries that the world's largest economy may be slipping into recession, and if that is indeed the case, analysts expect the Federal

Reserve to swing into action by cutting in benchmark interest rates.

In the domestic markets, two new listings this week will highlight the contrasting investor sentiment on the IPO front. On Monday, Take Solutions, which got subscribed by over 63 times, is set for a mega listing.

The shares were priced Rs 730.

This week, on Friday, will also see the listing by real-estate developer Purvankara Developers, which was forced to revise its price downwards for its IPO following weak response.

Cues from the US market, where the Dow closed higher by 143 points and Nasdaq up by 35 points on Friday, are positive.