Markets are likely to be highly volatile in this holiday-shortened week and will continue to be guided by COVID-related updates, global cues and quarterly earnings, analysts said.
Equity markets would remain closed on Wednesday for Ram Navami.
"We expect volatility to remain high as the market is expected to continue its focus on updates of state-wise restrictions and the spread of the virus. Stock-specific movements based on upcoming results can be expected in the market," said Vinod Nair, Head of Research at Geojit Financial Services.
"This week is also a holiday-shortened one and we expect volatility to remain high. In absence of any major event, the focus would remain on earnings as companies like ACC, HCL Tech and M&M Finance will announce their results. Besides, COVID-related updates and cues from the global markets will be on the radar," Ajit Mishra, VP Research, Religare Broking said.
Nestle India, Rallis India and Tata Elxsi are the other major companies to announce their earnings this week.
"Going ahead, Indian markets are likely to be highly volatile and would be an interplay of resurgence in COVID-19 cases and the pace of vaccination. As the pace of vaccination picks-up, we expect the narrative to gradually shift from Covid-19 and restrictions back to growth/cyclical recovery and rebound corporate earnings," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
Besides, movement of rupee, investment pattern of foreign institutional investors and Brent crude would also be watched by investors.
Nirali Shah, Head - Equity Research, Samco Securities said, "With major Indian cities undergoing partial lockdowns, markets may continue to remain unstable at least till the uncertainty on the rising cases front subsides.
Market participants must not read much into India Inc.'s numbers and should give utmost importance to the management commentary in order to gauge future growth prospects amidst the second wave." During the holiday-truncated last week, the 30-share BSE benchmark dipped 759.29 points or 1.53 per cent.
