Stock markets likely to stay volatile ahead of F&O expiry

New Delhi, April 24: Equity markets may face volatility this week amid monthly derivatives expiry, and global trends along with the ongoing quarterly earnings by corporates would continue to play a major role in the trading movement, analysts said.

Markets would also keenly track foreign fund movement amid unabated outflows.

“It is expected that this week will also kick off on a sombre note on the back of a sharp fall in the US market on Friday after hawkish commentary by the US Fed and weak earnings. The global cues may dominate this week along with April month F&O expiry and Q4 earnings.

“In terms of Q4 earnings, the market will react to the results of ICICI Bank on Monday while HDFC Life, Bajaj Auto, HUL, Ambuja Cement, Axis Bank, Bajaj Finserv, Vedanta, IndusInd

Bank, Maruti Suzuki, Ultratech Cement and Wipro will be other key results which are scheduled this week,” said

Santosh Meena, Head of Research, Swastika Investmart Ltd.

FIIs are continuously selling in the Indian equity market and their behaviour will be important amid concerns of aggressive rate hikes in the USA, Meena added.

There are still uncertainties about the RussiaUkraine war whereas the market will also have an eye on crude oil prices, he said.

“The still persistent war situation in Eastern Europe, likely rate action from the ECB, and also an enhanced rate response from the Fed are factors that will guide the markets in the coming week, and may also put pressure on prices,” Joseph Thomas, Head of Research, Emkay Wealth Management, said.

Last week, the Sensex lost 1,141.78 points or 1.95 per cent, while the Nifty shed 303.70 points or 1.73 per cent.

The still persistent war situation in Eastern Europe, likely rate action from the ECB, and also an enhanced rate response from the Fed are factors that will guide the markets in the coming week, and may also put pressure on prices

— JOSEPH THOMAS, Emkay Wealth