Stock markets are expected to remain volatile in this eventful week as the Reserve Bank of India (RBI) policy, Union Budget, crude oil movement, and macro data would be keenly watched by investors, say analysts.
The ongoing quarterly earnings season would also be in focus directing the movement of indices. "Week ahead, markets may continue to remain highly volatile amidst the ongoing earnings season and the Union Budget 2021. Expectations from the Budget are running high," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd said.
Quarterly earnings of HDFC, Adani Power, Hero MotoCorp and M&M would remain in focus this week. The Economic Survey 2020-21 was tabled in the Lok Sabha on Friday. The Survey projected that India's economy is likely to grow by 11 percent in the fiscal year beginning April 1 as a vaccine drive and rebound in consumer demand help it emerge from the carnage inflicted by a strict coronavirus lockdown.
The rebound will follow an estimated 7.7 percent contraction in the Gross Domestic Product (GDP) in the current financial year, the document said. According to the survey, the "V-shaped recovery is supported by COVID vaccination drive." "Now all eyes would be on the Union Budget scheduled on Monday.
Driving market sentiments would also be announcements of PMI data for the manufacturing and services sector this week. Also, the RBI interest rate decision on Friday is another major event that would drive domestic market sentiments.
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