As the countdown to the Union Budget 2022-23 has begun, the Indian equities market is likely to remain volatile in the week beginning Monday.
Market participants will try to envisage the reforms and measures that could be announced by Finance Minister Nirmala Sitharaman in the budget 2022 to be presented on February 1.
The Indian stock markets have been volatile with negative bias in the fortnight preceding the presentation of the union budget.
Snapping four-week of winning run the benchmark indices - Sensex and Nifty - slumped around three-and-a-half per cent during the week.
The rate hike speculation led to increase in bond yields. India's 10-year government bond yield rose to 6.68 per cent and the US 10-year treasury yield climbed to 1.90 per cent.
The US as well as Indian bond yields rose to two years high.
The Union Budget 2022-23 will be presented ahead of the assembly elections in five states. Uttar Pradesh assembly election is seen crucially important.
There are speculations that the government will come out with populist budget to win hearts of the voters.
(With inputs from ANI)