Rising markets may see volatility amid derivatives expiry

Tags: Stock Market
Indian stock indices, which are trading at record high levels, may see volatility this week amid expiry of equity derivative contracts on Thursday, experts say.

The next trigger for the markets could be policy announcements from the new government once oath taking ceremony of Prime Minister-designate Narendra Modi concludes on Monday, they added.

"Markets may remain volatile this week as traders roll over positions in the futures & options (F&O) segment. Investors will closely watch policy announcements, if any, from the NDA government at the Centre after the oath taking ceremony," said Jayant Manglik, President-retail distribution, Religare Securities.

On Friday, equity benchmarks Sensex and Nifty galloped to new closing peaks, logging their best single-day rise in 10 days. The BSE Sensex ended at a new historic closing high of 24,693.35 while the NSE Nifty concluded at 7,367.10.

Going ahead, stock specific movements will be seen as firms, including Tata Motors, Sun Pharmaceutical Industries and Coal India, declare quarterly earnings.

Trend in investment by foreign institutional investors, global cues and movement of rupee against the US dollar will also hold key.

Ever since NDA's victory in the election, speculation has been rife about the likely allocation of key ministerial portfolios in the Modi-led NDA government.

After the BJP led-NDA's landslide victory in the recently concluded Lok Sabha election, investors are expecting measures from the incoming government to revive the Indian economy, experts said.

Jignesh Chaudhary, Head of Research, Veracity Broking Services said: "It is expected that the new government will form business friendly economic policies which will remove bottlenecks and will eventually help the economy to grow."

All eyes are on RBI's monetary policy in early June and the anticipated declaration of Union Budget proposals in the month of July, traders said.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Sebi’s latest ban on 260 entities plugs a major loophole for stock manipulation

    Last week, the capital market regulator, Securities and Exchange Board of India (Sebi) banned 260 entities from dealing in the securities market for m

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Kumar Jain

Nuances in managing joint ventures

This is an age of collaboration. A seemingly simple device ...

Kuruvilla Pandikattu SJ

Finding the missing child of Christmas

Christmas is basically the feast of a helpless child. The ...

Shona Adhikari

Why Indian art auctions are here to stay

With Christie’s second India sale just over in Mumbai, we ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture