NEW DELHI: Equity markets will be driven by foreign investor trading activity and global trends this week, analysts said, with benchmark equity indices likely to see volatility as monthly derivatives contracts mature.
Moreover, factors such as progress of monsoon and Brent crude oil will also determine investor sentiment this week.
“Sectoral movements are expected this week amidst the Budget-related talk. Key drivers to watch include the progress of monsoon, whose short-term impact on investor confidence will be closely monitored,” it said.
“Investors will also keep an eye on FII (foreign institutional investors) and DII (domestic institutional investors) fund flows and crude oil prices to gauge the overall sentiment,” said Pravesh Gaur, senior technical analyst at Swastika Investmart.
Globally, economic data such as U.S. GDP is due to be released on June 27, he added.
“Going forward, attention will be focused on updates on the budget, especially from the US, and global market trends,” said Ajit Mishra, senior vice president, research at Religare Broking.
He added that volatility could increase with the upcoming expiration of June derivatives contracts.
Last week, the BSE index rose 217.13 points or 0.28 percent while the Nifty gained 35.5 points or 0.15 percent.
“Overall, the market is likely to remain stable and stabilise at higher levels in the near term. Budget-related sectors are likely to remain active,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.
Shrikant Chouhan, head of equity research at Kotak Securities, said market participants will be closely monitoring future developments in the monsoon.
“Going forward, the focus will gradually shift to the budget and Q1FY25 profits,” Chouhan added.
Published June 23, 2024 09:59 IST
