Experts say derivatives expiry and global cues are likely to impact stock markets this week
New Delhi:
Analysts said global factors and trading activity by foreign institutional investors are expected to weigh on the domestic market sentiment this week, while equity benchmarks may face volatility amid the expiry of monthly derivatives trades.
The Indian markets have been witnessing volatility for the past several trading sessions. However, Nifty managed to break its five-week losing streak and ended with a decent weekly gain of 3 per cent, said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Inflation and slowdown in the global economy means that inflation is a major concern for global equity markets, “Therefore, we are witnessing continued selling by FIIs (Foreign Institutional Investors). However, Indian markets due to support from domestic investors.” are in better shape,” he added.
“The market may remain volatile this week due to the end of the month of May. On the global front, the minutes of the FOMC (Federal Free Markets Committee) meeting to be released on May 25 will be an important trigger, while the dollar index will remain volatile. Volatility and commodity prices will be other important factors,” Mr. Meena said.
Yesha Shah, Head of Equity Research, Samco Securities, said: “The volatility seen last week is expected to continue considering key economic data releases, the current earnings season and monthly closings. FOMC minutes, US GDP growth forecasts and initial jobless claims Will impact global market sentiment.”
Last week, the Sensex rose 1,532.77 points, or 2.90 per cent, while the Nifty rose 484 points or 3.06 per cent.
Siddharth Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
On the earnings front, SAIL, Zomato, Adani Ports, Deepak Fertilizers, InterGlobe Aviation, Hindalco, NMDC, GAIL and Godrej Industries will announce their quarterly figures this week.
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