People wait outside Bombay Stock Exchange after the Sensex witnessed the worst drop in history
People wait outside Bombay Stock Exchange after the Sensex witnessed the worst drop in history
AFP

With no major macroeconomic domestic data to be announced this week, global trends, geo-political worries and F&O expiry on Thursday are likely to move stock markets this week, analysts said.

Markets may witness volatility amid derivatives expiry on Thursday, they said.

Benchmark index Sensex pared gains to close almost flat last week as the US Federal Reserve's guidance triggered a rout in global equities.The US Fed did not unveil any additional stimulus measures at its policy meet, even though it hinted at the key interest rate staying close to zero at least through 2023.

Federal Reserve Chairman Jerome Powell also said the economic outlook is "highly uncertain", stoking fears of more pain in store for businesses.

"Markets have been trading with uncertainty and the clear lack of direction to either side was visible in the last week's trades. Due to lack of any fresh triggers for the market, the current uncertainty is expected to continue. But any news with regards to the border tension with China, or global events can impact the markets on the downside," said Vinod Nair, Head of Research at Geojit Financial Services.

Investors would also closely monitor domestic and global coronavirus cases.

"Going forward, market would continue with its cautiousness with positive bias as investors would keep a close eye on the US and its response to the further stimulus demand to deal with the pandemic. Some of the other key data that would be released this week would be PMI for the US, the UK, Eurozone. On the domestic front, investors would track developments around India-China border issues," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd said.

Sumeet Bagadia, Executive Director, Choice Broking said that factors such as key global economic data, geopolitical news and development related to COVID-19 vaccines will continue to govern the market.

Other important drivers for markets like trend in Brent crude oil and the rupee would also be tracked by investors.

During the last week, the Sensex dropped 8.73 points or 0.02 per cent, while the Nifty advanced 40.50 points or 0.35 per cent.

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