The stock market will follow global trends in the absence of any major domestic events this week and it is expected that the market movement will be limited in this period. Analysts said that due to the cutting of monthly derivatives deals, there may be ups and downs.
Vinod Nair, head of research, Geojit Financial Services, said he expects domestic markets to be guided by global trends in the absence of any major domestic events this week. Nirali Shah, head of equity research company Samco Securities, said markets were expected to remain sluggish and limited.
He said that investors should trade carefully in the key indices and take into account any developments in the global markets. The BSE benchmark Sensex lost 654.54 points or 1.26 percent in the previous week. The 30-share BSE Sensitive Index Sensex ended 379 points down at 51,324.69 on Friday. At the same time, the National Stock Exchange’s Nifty lost 90 points to close at 15118.95. Earlier, the Sensex and Nifty opened on the green mark, but the market declined due to profit recovery.
Shah said markets maintained expectations at the beginning of the week, but the market became under selling pressure after the Nifty reached its all-time high. After the general budget , the market saw a boom, but the profit recovery dominated last week. Analysts also said the rally in Brent crude, the rupee move and the trend of foreign institutional investors will affect the market sentiment.