MUMBAI: Heightening worries about the likelihood of the US Fed increasing rates this months will keep stock investors on the edge in the coming days. The undertone is nervous with Mainland Chinese markets set to reopen on Monday after a four-day weekend and foreign investors’ selling of Indian stocks showing no signs of abating. Top brokers and analysts expect the benchmark indices to slide 3-4% this week. On Friday, Wall Street weakened with the Dow Jones dropping 1.7% as the better-than-expected unemployment rate intensified hopes the Fed would raise interest rates on September 16-17. While the jobs added in August were lower than what the market expected, the unemployment rate dropped to a seven-year low of 5.1%. A lot will depend on how Chinese markets open after the long weekend. Analysts expect the global market fall to be severe if the selloff in Chinese stocks resumes. “The volatility in global markets which is adding a lot of uncertainty is unlikely to go away soon, while India will get impacted in the short term,” said Rashesh Shah, chairman and CEO at Edelweiss Group. “People are getting afraid that the global economy may slow down led by China and this is the biggest challenge the world is currently facing.” “If the intensity of FII selling pressure continues to remain at high levels then Nifty could slide towards 7,500-7,400 next week,” said Amar Ambani, head of research at IIFL. “However, any recovery would find stiff resistance at 7,750-7,800 levels.” Foreign institutional investors (FIIs) sold Indian equities worth about Rs 4,350 crore last week. This selling comes after FIIs had dumped stocks worth Rs 16,877 in August, the biggest monthly sell-off since the crisis of January 2008. “The probable interest rate hike by the US Federal Reserve will play on market sentiments till the event actually concludes on September 17,” said Gautam Sinha Roy, vice president and fund manager at Motilal Oswal. China will unveil its trade balance data for August on Monday, 7 September.