Markets may see volatility amid monthly F&O expiry.
With no major domestic triggers in sight, investors will watch out for global trends and foreign investor activity, analysts said. Markets may face volatility as monthly derivatives contracts expire this week.
Massive buying by foreign funds, infusing over Rs 14,000 crore on Friday, powered last week’s record-breaking rally in stock exchanges.
Historically, US rate cuts have boosted emerging markets like India. However, upcoming US macroeconomic data and geopolitical risks could pose risks to the momentum.
As derivatives contracts expire this week, volatility is expected to rise according to analysts. They advise monitoring crude oil and rupee movements alongside foreign flows for cues.
Last Friday, Sensex soared 1.63% to an all-time peak of 84,544 points. In the week, the index surged 1.99% while Nifty gained 1.71% to end at a record high.
Valuations of ICICI Bank, HDFC Bank, and Reliance Industries led gains worth Rs 1.97 lakh crore among top-10 firms. Their market cap rose the most as optimism drove broad-based rallies.
Analysts see the positive momentum continuing supported by strong domestic macros and receding fears of a US slowdown. However, global headwinds remain a key variable to watch.
