Christmas 2023: Stock markets likely to face volatility in holiday-shortened week, say Analysts
Swastika Investmart Ltd, said. Given the lack of substantial indicators, Meena noted that the December F&O expiry might introduce volatility to the markets. In the preceding week, the BSE benchmark saw a decrease of 376.79 points, equivalent to 0.52%, while the Nifty experienced a dip of 107.25 points, or 0.49%.
This decline followed a remarkable surge in the markets, where both the benchmark equity indices, Sensex and Nifty, reached their all-time high levels on December 20. "While India's equity market valuation is expensive, they may remain elevated due to the increased likelihood of a stable government at the centre. Additionally, with FPI holdings at a 10-year low and potential foreign buying in the debt market ahead of India's inclusion in the JP Morgan Emerging Market Government Bond Index, may provide some stability to the INR," Jitendra Gohil, Chief Investment Strategist, Kotak Alternate Asset Managers Limited said.
Analysts noted that the markets had been on a remarkable streak of setting records and had entered an overbought territory. Therefore, it was anticipated that occasional interruptions, such as profit-taking, would occur. Consequently, the week concluded with declines after seven consecutive weeks of gains.
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