March 27, 2023
New Delhi, India
Market Volatility Anticipated as F&O Expiry Looms
Global Cues and Domestic Triggers
Analysts are bracing for a volatile week ahead in the Indian stock markets, as multiple factors converge to influence investor sentiment. With the scheduled expiry of March month derivatives contracts and the impending close of the financial year 2023-24, investors are keeping a close watch on macroeconomic data, government announcements, and foreign capital inflow.
Mixed Cues Drive Roller-Coaster Trading
Last Week Recap
Last week, domestic equity benchmarks experienced a roller-coaster ride, oscillating amid mixed cues before closing marginally positive. Initial declines were spurred by concerns of froth building in midcap and smallcap segments. However, buoyancy in global markets, triggered by hints of potential interest rate cuts by the US Federal Reserve, led to a rebound towards the end of the week.
IPO Buzz and Primary Market Activity
Upcoming Listings
The primary market is set to witness significant activity with several initial public offerings (IPOs) slated for subscription across various segments. Thirteen new IPOs and two listings are scheduled, including offerings from SRM Contractors, Trust Fintech, and Radiowalla, among others. These listings are expected to add further momentum to market activity.
Foreign Investment Trends
FII Activity
Foreign institutional investors (FIIs) remained net sellers in Indian markets last week, while domestic institutional investors (DIIs) continued to be buyers. However, foreign portfolio investors (FPIs) have been steadily increasing their investments in Indian equities and debt instruments, signaling sustained interest in the market.
Global Macroeconomic Indicators and Oil Prices
External Factors
Investors are closely monitoring developments in US markets, particularly key economic data releases such as GDP figures. Additionally, fluctuations in oil prices, influenced by geopolitical tensions and currency movements, can impact investor sentiment globally.
T+0 Settlement Implementation
SEBI Directives
In line with directives from the Securities and Exchange Board of India (SEBI), stock exchanges will introduce T+0 settlement for select securities starting March 28. This move aims to expedite trade settlement processes, benefiting investors by providing quicker access to securities and funds.
Corporate Actions and Market Holidays
Ex-Dividend and Ex-Split
Several companies are set to trade ex-dividend and ex-split despite market holidays. Shares of companies such as CRISIL Ltd and SBI Cards and Payment Services will trade ex-dividend, while Persistent Systems is set to declare a stock split.
As investors brace for a week filled with significant market triggers, ranging from IPO launches to macroeconomic data releases, volatility is expected to remain a key theme in the Indian stock markets.
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