Stock markets may face volatility in a holiday-shortened week ahead amid the scheduled monthly expiry of derivatives contracts, besides global trends will continue to influence trading at the benchmark indices, analysts said. Focus would also remain on the movement of monsoon and trading activity of Foreign Institutional Investors (FIIs). Equity markets will remain closed on Wednesday for Bakri Id. "As we enter a new week, the market is expected to lack clear cues, but the expiration of June's F&O contracts may introduce some volatility as traders roll over their positions," said Santosh Meena, Head of Research, Swastika Investmart Ltd. On the domestic front, the movement of monsoon will be crucial, and fortunately, it is gaining momentum, Meena said. He further added that in global markets, investors will closely monitor the movement of crude oil prices, the dollar index, and the US bond yields. "We expect volatility to remain high due to the scheduled expiry of June month ...
India is the best performing market in May so far with a 2.8 per cent rally in Nifty as against the negative returns in European markets and just 1 per cent return in S&P 500. The performance of other emerging markets also is lacklustre.
Nifty 12-month forward PE is around 23 per cent below peak. Indian equities should find support from robust earnings outlook owing to strength in the domestic economy.
Overall, domestic institutional investors (DIIs), which include MFs, made a net investment of Rs 2.56 trillion in last financial year
The turbulence in FY23 can be attributed to a concoction of interest rate hikes, foreign investment outflows, a global war, soaring food, fuel prices and a global banking crisis
Only if more skeletons don't emerge from the closet
Thus far in FY23, MFs have pumped in a net Rs 1.53 trillion in equities till March 1, 2023, Securities and Exchange Board of India (Sebi) data show, as compared to Rs 1.72 trillion in FY22
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The domestic currency has fared better than many of its emerging market peers
If Nifty breaches support levels of 15,600-15,700, the index could fall to 14,500 levels
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'Primary markets have had a long bull run, with many companies cashing in on the positive sentiment', said Maheshwari
March was the sixth straight month when foreign portfolio investors pulled out Rs 41,123 crore from the Indian equity segment, National Securities Depository data had revealed
Our global desk currently maintains an 'overweight' rating on India with a Sensex target of 66,000