Investors’ Activity, Monsoon Season, Global Macro Trends To Drive Markets This Week: Analysts

An analyst pointed out that the volatility in the global markets could surge further due to the scheduled expiration of June month derivatives contracts

Global factors such as release of macroeconomic data from the US are also scheduled for the week.

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Markets ahead are anticipated to take insights from the trading activity of foreign investors and global trends, analysts noted. The experts said that benchmark equity indices are expected to witness volatility amidst the scheduled monthly derivatives expiry.

Other factors to drive investors’ sentiments in the week include the fluctuations in Brent crude oil movements and the monsoon season, reported PTI. Elaborating on the outlook, Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, said, “This week, sector-specific movements are anticipated amid budget-related buzz. Key factors to watch include the progress of monsoon, which will be closely monitored for its near-term impact on investors' confidence. Investors will also keep a close eye on FII (Foreign Institutional Investors) and DII (Domestic Institutional Investors) fund flows, as well as crude oil prices, to gauge overall sentiment.”

Global factors such as release of macroeconomic data from the US are also scheduled for the week. The US GDP data will be revealed in the latter half of the week, Gour pointed out.

Ajit Mishra, Senior Vice President, Research, Religare Broking Ltd, stated, “Looking ahead, attention will remain on updates related to the budget and global market cues, particularly from the US.” 

Mishra stressed that the volatility in the global markets could surge further due to the scheduled expiration of June month derivatives contracts.

Notably, the BSE benchmark index, Sensex, gained more than 200 points or 0.28 per cent last week, while the NSE benchmark Nifty50 inched up 35.5 points or 0.15 per cent.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, noted, “Overall, the market is likely to remain steady and consolidate at higher levels in the near term. Budget-related sectors are likely to remain in action.”

Shrikant Chouhan, Head, Equity Research, Kotak Securities, predicted that market investors would also clock the progress of monsoon. “Going ahead, focus will gradually shift towards budget and Q1 FY25 earnings,” Chouhan added.