Stock markets should focus on global trends in the absence of any major national events expected this week, while investors should continue to keep an eye on the movement of foreign funds and crude oil prices, analysts said. .
Monsoon progress would also be monitored, they added.
“Relentless selling by FIIs is a major concern for Indian markets. The movement of the rupiah and the development of the monsoon will be other important factors for the market,” said Santosh Meena, Head of Research at Swastika Investmart. ltd.
“In the absence of any major national events, global signals will continue to dictate the trend. Participants will also monitor the trend of Covid cases and the progress of the monsoon,” said Ajit Mishra, VP – Research, Religare Broking Ltd.
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Last week, the Sensex plunged 2,943.02 points or 5.42%, while the Nifty fell 908.30 points or 5.61%.
Weak global signals, a sharp U.S. rate hike and aggressive selling by FIIs (foreign institutional investors) were the main reasons for the turmoil last week, Meena added.
“There are many moving parts that are likely to determine the course of stock market development. In the short term, some of the key factors that are important to monitor include inflation and monetary policy, the trajectory of stock market commodity prices, especially oil, any developments on the Ukraine-Russia war and the outlook for domestic demand and corporate earnings,” said Shibani Kurian, Senior Executive Vice President and Head of Equity Research , Kotak Mahindra Asset Management Company.
Yesha Shah, head of equity research at Samco Securities, said: “As there are no other major domestic or international macro events this week, Indian indices are expected to be jittery, moving in tandem with their peers. world”.