'Bourses likely to face volatility, focus to remain on global factors'

New Delhi: Stock markets are likely to witness volatility this week amid monthly derivatives expiry, ongoing Russia-Ukraine conflict and high crude oil prices, analysts said.

Geopolitical tensions and supply-side concerns would continue to dominate investor sentiment, they added.

"This week, we will have March month F&O expiry that may provide a direction to this range-bound market. Global equity markets are also rebounding and showing some signs of stabilization, however, there are still uncertainties about the Russia-Ukraine issue that may continue to cause volatility in global markets.

"Crude oil prices have again inched higher amid geopolitical issues and supply-side concerns and if it sees further strength then it could be a cause of concern for the Indian equity markets," said Santosh Meena, Head of Research, Swastika Investmart Ltd. According to market analysts, the scheduled monthly expiry of March month derivatives contracts would keep volatility high this week.

"Participants will also be eyeing auto sales data starting April 1. On the global front, updates on the Russia-Ukraine war and its impact on world markets and movement in crude will remain in focus," Ajit Mishra, VP Research, Religare Broking, said. The market movement would also depend on the movement in rupee and investment pattern of foreign institutional investors (FIIs).

After two weeks of consecutive gains, benchmark indices Sensedx and Nifty declined by nearly 1 per cent amid no signs of de-escalation between Russia and Ukraine and hawkish statements by the US Fed.

Amongst the sectors, metal was the top gainer followed by IT and pharma. On the flip side, FMCG, banking and auto were the top losers. Amid all, the broader indices outperformed as midcap and smallcap index ended higher 1 per cent and 0.2 per cent respectively.