FIIs, global cues, Omicron trends to be market moving factors this week: Analysts
Domestic equities will be mainly driven by global market trends, foreign institutional investors' movement and developments around new Covid variant Omicron this week, according to analysts.
Markets traded under pressure last week following weak global cues and overall investor sentiment remained downbeat throughout the week, they observed.
See Zee Business Live TV Streaming Below:
"Global markets, Omicron variant, dollar index and FIIs' behaviour will be key factors to drive the market this week," said Santosh Meena, Head of Research, Swastika Investmart Ltd.
One major event last week was US Federal Reserve's announcement that it will end bond-buying from March, and it also signalled starting rate hike cycle thereafter.
"The selling can be attributed to hawkish Fed, rising worries of Omicron, rupee weakness, and most importantly relentless selling by FIIs," Meena added.
"In absence of any major event, global cues will dictate our market trend. Participants are keeping a close watch on the Covid situation due to the new variant and related updates will continue to induce volatility in days to come," Ajit Mishra, VP Research, Religare Broking, said.
"Negative global cues, continued FII selling, absence of any positive trigger and increasing cases of Omicron are likely to continue putting pressure on the market," said Siddhartha Khemka, Head - Retail Research, Broking & Distribution, Motilal Oswal Financial Services Ltd.
During the last week, the BSE benchmark tumbled 1,774.93 points or 3.01 per cent.
The Sensex plummeted 889 points on Friday in line with a selloff in global markets amid hawkish central banks and rising Omicron cases.
Yesha Shah, Head of Equity Research, Samco Securities said, "In the absence of major domestic events, market will seek indications from global indices and macroeconomic data, such as the US GDP growth rate, to decide its movement. As global macros are expected to dominate, investors should keep an eye on FII activity to assess trends and stick to a stock-centric investing strategy in the midst of range-bound index moves."
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Liquor stock under Rs 300: Can this smallcap scrip double your money in 1-2 years? Check targets by Anil Singhvi
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
12:57 PM IST