MUMBAI, Jan 14: Indian shares are expected to remain choppy and rangebound next week on profit-booking by funds and investors, dealers said.

Early in the new year, trading sentiment has turned weak after unimpressive third-quarter financial earnings from index heavyweights this week, they said.

The Mumbai stock exchange’s 30-share benchmark Sensex index closed Friday at 9,374.19, down 266.1 points or 2.76 per cent from the previous week’s close of 9,640.29.

Reliance Industries last Tuesday reported a 15 per cent drop in third quarter net profit after a partial shutdown of its refinery late last year in the western state of Gujarat.

The next day India’s frontline software stock Infosys showed a 7.1 per cent rise in net profit over the previous quarter.

“The markets were clearly nervous following these results. With index heavyweights posting average results so early in the earnings season, market sentiment worsened,” said Manoj Kakaiya of ULJK Securities.

R. Balakrishnan of investment advisory firm Parallex Consultancy Services said the markets could remain choppy for weeks to come.

Prices have long crossed fundamentals and the market then usually takes a long time looking for a fresh trigger to buy stocks, he said.

In 2005, the Sensex rose 42.33 per cent on sustained foreign funds buying from the 2004 closing level of 6,602.69.

Software major Wipro is set to announce its third quarter December-end financial earnings on January 18.—AFP