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Markets may see wild swings next week as US-N Korea drama spooks investors

Over the last week, the BSE recorded a hefty fall of 350.17 points, or 1.08 per cent

Press Trust of India  |  New Delhi 

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Stock may witness volatility on account of derivatives expiry next week and the recent spike in tensions on the Korean peninsula, say experts.

A fresh war of words broke out between the US and last week, spooking investors.


"As global tensions mount with pushing to a next level of tests with hydrogen bomb, it will be hard for bulls to have a comeback which was as swift as before. Also, we don't see any cues that can lead us to a decline in volatility," said Mustafa Nadeem, CEO, Epic Research.

Vinod Nair, Head of Research, Services, said: "In the recent times, domestic market was the best performing among emerging due to strong reform agenda and stable policies.

"However, any meaningful uptick in corporate earnings and normalisation of will be the key for supporting the current premium valuation. Though DIIs flows are very strong, but any earnings hiccups in coming quarters may limit these inflows."

Over the last week, the BSE recorded a hefty fall of 350.17 points, or 1.08 per cent, the biggest since August 11. The NSE, too, ended lower by 121 points, or 1.19 per cent for the week.

"With global equity in risk off mode over Korean tensions, the ongoing weakness has gained more momentum. Approaching expiry has also added to liquidation pressure," said Anand James, Chief Market Strategist, Services Ltd.

First Published: Sun, September 24 2017. 12:00 IST
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