While investors will be tempted to buy at lower levels, weakness in the global markets will weign on the sentiment on Monday.
Domestic equity markets are likely to have a mixed trading session on Monday as the scope of Brexit widens in the UK and lawmakers decide the path of the eventual breakaway from the European Union. While investors will be tempted to buy at lower levels, extended weakness in the global markets is likely to weigh on the buying sentiment.
The benchmark BSE Sensex opened 77 points up on Monday morning but quickly fell back in to the red. At 0929 hours, Sensex was down 0.07% at 26,382.87.
On Friday, the 30-share index shed over 1,000 points as the results of the crucial UK referendum started coming out, ending the session down 604.51 points or 2.24% lower at 26,397.71 as UK decided to leave the 27-country trade block.
The Nifty fell below the 8,000-mark, closing the session at 8088.60, down 181.85 or 2.20% lower.
"Asian stocks fell and the British pound tumbled more than 2% on Monday as markets struggled to shake off deep uncertainty sparked by Britain's decision to leave the European Union.Sentiment remained weak and trading was volatile, even if the worst of the turmoil seen on Friday, when global stock markets suffered their biggest decline in nearly five years, had eased," a Reuters report said.
This is likely to weigh on the domestic indices in Monday's trading session.
Global markets lost $2.08 trillion on Friday, in the biggest loss ever, trumping the Lehman Brothers' bankruptcy and the Black Monday stock market crash of 1987, S&P Dow Jones was quoted as saying in another Reuters report.
The rupee is expected to remain weak against the dollar as the greenback maintains its lead against the pound in the international markets.
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