Markets may remain volatile in this holiday-shortened week amid monthly derivatives expiry, quarterly earnings and the upcoming Union Budget, analysts said.
Share markets would remain closed on Tuesday for the Republic Day holiday. “Going ahead, markets may continue to remain highly volatile ahead of monthly expiry and Union Budget 2021. The ongoing earnings season which kicked off on a strong note would further add to the volatility. The Fed monetary policy is also due this week,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Last weekend, The BSE Sensex scaled the 50K-mark for the first time. However, widespread profit booking and weak global cues hit markets and the Sensex tanked 1.5 percent or 746 points on Friday while NSE Nifty dropped below 14,400 level.
“Sensex@50000 is great news not only for the market and investors but for the economy also. Markets are barometers of the economy with a potential to discount the future. If this is true, the Indian economy is on a strong recovery path.
“If the recovery in growth and corporate earnings, currently underway in India, gathers momentum, the markets may further surprise on the upside. But it is important to appreciate that the market is overvalued from the short- term perspective. At high levels, the market is vulnerable to a correction,” VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services had said.
Among the major earnings to focus on this week are from UCO Bank, Tata Motors, Maruti Suzuki India, Axis Bank, Canara Bank, Bank of Baroda, Hindustan Unilever Limited and Lupin.