Global cues, FII action, F&O expiry among 9 factors to drive Dalal Street this week
This saw the benchmark Sensex and Nifty50 drop close to 3% each and snap a three-week winning streak.
The week ahead is unlikely to bring major fireworks, and market experts see high volatility amid the expiry of the September derivative series.
Global markets, which also played a role in the downward trend of local shares, will continue to be closely tracked by investors for cues.
Further, foreign institutional investors were big sellers in the domestic market last week. So, their trading strategy will be closely tracked to gauge market direction.
Global Markets
Benchmark indices in the US registered 2-4% weekly losses, which has turned the global sentiment sour.
“The global markets are facing challenges, particularly after the ultra-hawkish FOMC policy.
Technically, major indices such as Dow Jones, Nasdaq, and S&P 500 are showing signs of a breakdown, potentially leading to a deeper correction in the US market,” said Santosh Meena, head of research, Swastika Investmart.
In the absence of any major domestic triggers, global markets will offer cues for trade to investors.
FII Flows
Foreign portfolio investors, which turned sellers in the domestic market early this month, remained so in the week gone by. So far in September, they have net sold Indian equities worth Rs 10,164 crore, according to NSDL data.
In the cash market, FII sold shares to the tune of Rs 18,260 crore, so far this month.
“Since valuations remain high even after the recent pull back and US bond yields are attractive, FIIs are likely to press sales so long as this trend persists,” said V K Vijayakumar, chief investment strategist, Geojit Financial Services, adding that it would be irrational to expect FIIs to buy equities aggressively when yields and the
