Stock markets are expected to experience volatility this week due to monthly derivatives expiry, the ongoing Russian-Ukrainian conflict and high crude oil prices, analysts said, according to the news agency. PTI report. Analysts believe that this week, geopolitical tensions and supply-side concerns will continue to dominate investor sentiment.
What analysts have to say:
Santosh Meena, Head of Research at Swastika Investmart Ltd, said: “This week we will have the March F&O expiry which may give some direction to this constrained market. Global equity markets are also rebounding and showing signs stabilization, however, uncertainties remain on the Russian-Ukrainian issue that could continue to cause volatility in global markets.
“Crude oil prices have risen slightly again amid geopolitical issues and supply side concerns and if it sees further strength, it could be cause for concern for Indian equity markets,” said Meena.
Market analysts also noted that the expected monthly March expiration of derivatives contracts will keep volatility elevated this week. Ajit Mishra, Vice President of Research, Religare Broking, said: “Attendees will also review auto sales data from April 1. On the global front, updates on the Russian-Ukrainian war and its impact on global markets and crude movements will remain in focus. ”
The movement of the market would also depend on the movement of the Rupee and the investment pattern of Foreign Institutional Investors (FIIs). It comes after two weeks of straight gains, benchmarks Sensex and Nifty fell nearly 1% amid no signs of de-escalation between Russia and Ukraine and hawkish statements from the US Fed.
Top winners this week:
Among the sectors, metal was the main gainer, followed by IT and pharmaceuticals. On the other hand, FMCG, Banking and Automotive were the big losers. Among all, the broader indices outperformed, with the mid and small cap indices finishing up 1% and 0.2% respectively.
The expected monthly expiration of March derivatives contracts would keep volatility elevated into next week. In addition, participants will also be watching auto sales data from April 1.
Impact of the Russia-Ukraine war:
Updates on the Russian-Ukrainian war and its impact on global markets and crude movements will remain in focus. Yesha Shah, head of equity research at Samco Securities, said “at-home volatility would be the main guideline as the last monthly expiry for this fiscal year is scheduled for this week.”
Analysts say markets are showing resilience amid uncertainty, but deteriorating global sentiment could turn the tide again. Vinod Nair, Head of Research at Geojit Financial Services, said: “The domestic market will continue to monitor global developments. The end of war and increased oil supply can help India maintain resilience. , otherwise the high volatility will be a concern in the short term.”
Milind Muchhala, Executive Director of Julius Baer, said: “Indian equity markets continue to be seething, influenced and reacting to the flow of additional information on the global front, particularly with regard to the geopolitical situation and Fed rhetoric. The two main and controllable challenges for the markets in the near term are continued inflationary pressures and rising bond yields.”
(With agency contributions)
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