Global cues, macro-data may determine indices’ trajectory

Global stock market-volatility, along with macro-economic data points, are expected to influence the Indian equity markets this week. Furthermore, market observers pointed out that the quarterly results season, oil price fluctuations, foreign fund flows and the rupee's movement against the greenback will also impact investors' risk-taking appetite through the week.

“The markets [this] week will focus on earnings, macro-data and, of course, global cues,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.

“The global markets remain volatile, which might spill over to Indian markets. FPIs (Foreign Portfolio Investors) have been net sellers, hence support from DIIs (Domestic Institutional Investors) remains important in event of global volatility."

The past few weeks witnessed a massive sell-off in the global markets, which inturn pushed Indian indices deep into the red. Since February 1, 2018, the Bombay Stock Exchange Sensex has shed around 1,900 points and the National Stock Exchange Nifty50 over 500 points.

According to Sebi Chairman Ajay Tyagi, the Indian stock market volatility "may continue" for some more time owing to global factors. However, he assured market players that "there is no cause of worry" in terms of volatility, as the country has a robust risk-management system and that "there is no issue in terms safety of contracts or enforcement of contracts".