Derivative Expiry, Global Factors May Make It A Volatile Week For Markets

Global factors and trading activity of foreign institutional investors are expected to guide domestic market sentiments this week

Global factors and trading activity of foreign institutional investors are expected to guide domestic market sentiments this week, while equity benchmarks may face volatility amid monthly derivatives expiry, analysts said.

Indian markets have been witnessing volatile trades for the past several trading sessions. However, the Nifty managed to break its five-week losing streak and ended with a decent weekly gain of 3 per cent, said Santosh Meena, head of research, Swastika Investmart Ltd.

Inflation and slowdown in the global economy means stagflation is a key concern for the global equity markets, "therefore, we are seeing relentless selling by FIIs (Foreign Institutional Investors). However, Indian markets are in a better position due to support from domestic investors," he added.

"The market may remain volatile this week due to May month expiry. On the global front, minutes of the FOMC (Federal Open Market Committee) meeting will be released on 25th May, which will be an important trigger, while movement of the dollar index and commodity prices will be other important factors," Mr Meena said.