Novemebr 2: Indian shares face certainty in the coming week, dependent on the behaviour of turbulent global stock markets and further sales by foreign funds, analysts said.

"Last week's rugged ride has exposed the fragile nature of markets," said Ramesh Damani, a member-broker at the Bombay Stock Exchange (BSE). "They're helplessly interdependent."

He expects the Bombay market to remain dull, veering towards the bearish."There'll be a renewed sense of caution," he said. "The volatility has hurt people."

The National Stock Exchange (NSE) took a beating last week, plummeting at one stage about 9.5 per cent before rising on a world recovery.The 50-share NSE index ended the week down 4.5 per cent at 1,085.25, or 51.1 points, after hitting a low of 1,028.20.

The BSE escaped punishment because it was closed for mosto f last week for local holidays. The BSE index closed fell 3.9 percent, or 154.22 points, at 3,803.24.

Analysts see the BSE index bottoming out at 3,600-3,650 points in the near-term. "Upside will have to wait till the New Year when fresh allocations are made," a trader said.

"The world markets have a huge psychological influence," said Arun Shah, a partner at brokerage P R Subramanyam and Sons. "The outlook depends on how global prices behave."

Jittery selling by foreign funds following huge losses in Hong Kong and Southeast Asia, which also shook the U.S. And European markets, rattled the usually calm Indian exchanges.

"I can'T see much buying coming into India," said Ketan Parekh, director at brokerage N H Securities. "People have seen values disappear overnight -- it will take time to get over this."

Indian markets face more foreign selling, Shah said.

"I definitely see redemption pressures building up on foreign funds," he added.

The selling will be due to redemption in Asia funds, but not India-dedicated funds, a foreign broker said.

"It is just that India is strong and can absorb some selling," he said. "People are looking at damage control."

Sharp devaluations in the regional currencies and a fall in share prices have made those markets very cheap compared to India's relatively unaffected rupee, analysts said.

A key question was: has Southeast Asia's currency crisis bottomed out?"If most of the damage is done with, then Asian markets will be redefined," the foreign broker said. "It makes these markets very, very attractive."

But fund managers will not easily get back into these markets after the recent falls, analysts said.

"People who have burnt their fingers would not surely put their money in these markets for some time," Noshir Khambatta, a BSE broker. "I see better times for Indian markets." y