This week’s terms in the local markets will be determined by global trends, foreign investors’ trading activities, and the movement of Brent crude, the oil benchmark, experts said.
The weekly decline in equity markets may be followed by unpredictable patterns on Thursday due to the monthly derivatives expiration.
According to Santosh Meena, Head of Research at Swastika Investmart Ltd., “this week marks the September month Futures and Options (F&O) expiry, which is expected to cause volatility in the market.”
According to Amol Athawale, vice president of technical research at Kotak Securities Ltd., worries about increasing crude oil costs, a strong US dollar index, and government rates have been dampening market confidence.
The emphasis will be on global and local macroeconomic statistics, stock market trends, the price of crude oil, the movement of the rupee versus the dollar, and investments by FIIs (Foreign Institutional Investors) and DIIs (local Institutional Investors).
“Market will take further cues from some key events, such as the US GDP data, UK GDP, and Eurozone inflation,” said Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd.
The BSE benchmark dropped 1,829.48 points or 2.69 percent last week, while the Nifty lost 518.1 points or 2.56 percent.
For the fourth day in a row, equity benchmark indexes were down on Friday.
“The market saw massive profit-booking last week, which was mostly sparked by a sharp decrease in HDFC Bank, subpar global signals, and strong selling by foreign institutional investors. The ultra-hawkish FOMC (Federal Open Market Committee) policy has put the world markets under pressure, according to Meena.
Equity benchmark indexes dropped last week amid a sluggish trend in global markets after hitting record high levels.
The markets responded unfavorably to the US Fed’s aggressive attitude on interest rates, despite the FOMC keeping key interest rates steady at their most recent meeting. Crude prices are still high, according to Kotak Securities Ltd.’s Shrikant Chouhan, Head of Research (Retail).