Stock markets are likely to remain volatile for this week as fresh triggers are looking weak, according to analysts. Some of the other factors that are likely to influence stock markets are the price of crude oil and the movement of the rupee. Stock may witness volatility due to derivatives expiry as some investors are likely to remain on the sides before the beginning of the general elections that is scheduled for beginning in the next month. The Lok Sabha elections would begin on April 11 and continue in seven phases covering the entire nation.
“Markets are likely to remain volatile for the week ahead as fresh triggers look weak going forward. With the end of the financial year coming close, liquidity from the debt markets will move out. “Some amount of redemption is likely to put pressure wherein domestic institutions are expected to remain net sellers,” said Jimeet Modi, Founder & CEO, SAMCO Securities and StockNote.
“In the recent times, domestic market has taken a positive direction given probability of a stable government formation at the Centre and benign inflation. On the other hand, uncertainties over Brexit deal and delay in trade deal between US-China continue to impact global markets,” said Vinod Nair, Head of Research, Geojit Financial Services.
Experts have added that the movement of rupee, price of crude oil and the investment trend by investors who are based outside India would continue to influence the trading trends, experts have added.
After an eight-day winning streak, the BSE Sensex fell by 222 points on Friday as investors hurried for booking profits. This happened when Fitch slashed India’s growth forecast. The Fitch Ratings on Friday reduced India’s GDP growth forecast to 6.8% from 7% for the next fiscal year due to lower economic momentum. In its latest Global Economic Outlook, Fitch also slashed GDP growth forecast for the current fiscal ending in March 2019 to 6.9% from 7.2% as per its projection in the December edition.
The 30-share index closed at 38,164.61 and NSE Nifty finished at 11,456.90. This week the Sensex added over 140 points, while Nifty gained 30 points.
