Russia-Ukraine tussle, COVID-19 situation in China major drivers for markets this week: Analysts

Stock markets will be guided by global factors such as the Russia-Ukraine war, the COVID-19 situation in China, and crude oil prices in absence of major domestic events this week, analysts said.

Stock markets are expected to keep their winning momentum this week as FIIs may come back aggressively fuelling a further rally in the market, they added.

''In absence of any major event, global cues viz the Russia-Ukraine war, the COVID-19 situation in China and movement of crude will remain in focus. Besides, participants will be also be eyeing FIIs flow for cues,'' said Ajit Mishra, VP Research, Religare Broking.

Any news of escalation in the Russia-Ukraine tussle and deterioration of the COVID-19 situation in China could again dent the sentiment, he added.

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''Our markets are in a much better shape compared to most of the emerging markets and we have witnessed a strong rally from lower levels, therefore, there might be some feeling of missing out among FIIs and they may come back aggressively in the Indian markets that may fuel a further rally in our market,'' Santosh Meena, Head of Research, Swastika Investment Ltd, said.

The market has already factored in that the Russia-Ukraine issue may end soon however news flows related to this issue may continue to cause some volatility in the market, he added.

Last week, the BSE benchmark Sensex jumped 2,313.63 points or 4.16 percent in a holiday-shortened week.

Equity markets were closed on Friday on account of Holi.

''Considering that no major domestic event is lined up, Indian markets will be guided by their global counterparts this week. The situation in Russia-Ukraine will be closely watched.

''Because crude plays such a pivotal role in determining the fate of Indian macros, crude price movements will also be meticulously monitored,'' said Yesha Shah, Head of Equity Research, Samco Securities.

Kotak Mahindra Life Insurance Co Ltd, Head – Equity, Hemant Kanawala, said, ''We expect markets to remain in a consolidation phase in the near term as investors assess global developments and upcoming domestic earnings season.''

(With inputs from PTI)