Domestic markets faced headwinds last week due to weak signals from global markets. (Representative Image)
Investors globally would continue to focus on US debt ceiling negotiations, Nanda added.
Analysts say quarterly domestic numbers, global trends and foreign fund trading activity would drive movements in stock markets, which could see volatility due to the scheduled monthly expiration of derivatives this week.
Equity markets took a breather last week. The BSE Sensex was down 298.22 points or 0.48 percent and the Nifty was down 111.4 points or 0.60 percent.
Global and domestic macroeconomic data, crude oil prices, global market trends, activities of foreign institutional investors (FIIs) and domestic institutional investors (DIIs) will be monitored this week.
“Earnings season will continue to take center stage with companies such as BPCL, Ashok Leyland, NMDC, Hindalco, Oil India, LIC, Vodafone Idea, BHEL, ONGC, and many more to report their results this week,” Arvinder Singh Nanda, Senior Vice President at Master Capital Services Ltd, said.
Investors globally would continue to focus on US debt ceiling negotiations, Nanda added.
US President Joe Biden’s administration reaches a deal with the Republicans as the country has a June 1 deadline to raise the country’s borrowing limit, now at $31 trillion, to continue paying the country’s bills.
According to Vinod Nair, Head of Research at Geojit Financial Services, domestic markets faced headwinds last week due to weak signals from global markets.
Equity benchmark indices found firmer ground on Friday after a three-session losing streak amid a positive trend in global markets and unabated inflows of foreign funds.
“We expect volatility to remain high this week due to the scheduled expiration of derivatives contracts in May. Meanwhile, the performance of global markets and consistency in foreign currency flows will remain on participants’ radar for clues,” said Ajit Mishra, VP – Technical Research at Religare Broking Ltd.
Market participants await the release of minutes from the Federal Open Market Committee (FOMC) meeting scheduled for May 24, said Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd.
According to Joseph Thomas, Head of Research at Emkay Wealth Management, markets can be expected to be volatile in the near term, led by stock-specific movements as the earnings season is in full swing.
(This story has not been edited by News18 staff and was published from a syndicated news agency feed – PTI)
