Markets may be volatile this week, global headwinds likely to continue

MUMBAI: The markets are likely to be volatile in the last week of 2016-17 while global headwinds may continue to stay. Reacting to US President Donald Trump’s failure to overhaul the health care system, Asian markets are already feeling the jitters.

“Domestic indices could ride over the rising uncertainty in US markets for delay in US tax reforms and lack of support to roll-back Obamacare bill. We expect benchmark indices to remain volatile,” said Abnish Kumar Sudhanshu, director & research head, Amrapali Aadya Trading & Investments.

Analysts expect the markets to be volatile as March Futures and Options (F&O) series expires on Thursday.

Rakesh Tarway, head of research, Reliance Securities, said, “With the derivatives expiry and financial year end scheduled during the next week, we expect markets to be very volatile. We expect an extensive movement in the current week and sustenance above levels of 8,980 to 9,000 will be watched for the up-move.”

Goods and Service tax (GST) bill, which is at its last leg of clearance, will be tabled in the parliament this week. Any further clearance on the passage could cheer up indices further.

As the year draws to a close this week, there could be more dividends especially by staterun firms. In a hasty move, Coal India Ltd declared an interim dividend of ₹1.15 per share on Sunday. This is in addition to the interim dividend of ₹18.75 per share it had declared earlier in March itself. The government owns around ₹79.78% in CIL.

In stock-specific action, investors may react to market regulator Securities and Exchange Board of India, or Sebi’s,decision to bar Reliance Industries Ltd (RIL) and 12 other entities from trading in the F&O segment for one year. RIL has been asked to pay ₹447.27 crore along with an annual interest of 12% dating back to 29 November 2007, which translates into a penalty of around ₹1,300 crore.

INVESTORS MAY REACT TO SEBI’S DECISION TO BAR RELIANCE INDUSTRIES LTD AND 12 OTHER ENTITIES FROM TRADING IN THE F&O SEGMENT FOR ONE YEAR