Markets brace for a volatile week

MUMBAI: Indian equity markets are expected to remain volatile this week as investors closely monitor foreign institutional investor (FII) flows, crude oil prices, Nvidia’s quarterly earnings and changing interest rate expectations.

The domestic benchmark indices witnessed profit booking towards the end of last week after recording a strong rally that had pushed the Sensex and Nifty higher. Despite the correction, sustained foreign inflows and resilient corporate earnings helped the markets retain their weekly gains.

On Friday, November 13, the BSE Sensex declined 319 points to close at 81,592, while the Nifty 50 dropped more than 155 points to settle at 25,144. The decline ended the Nifty’s three-session winning streak.

Market sentiment was affected by concerns surrounding global artificial intelligence-related trade, rising crude oil prices and expectations that monetary policy will tighten after domestic inflation rose more sharply than expected.

Foreign investor activity will remain a major factor in determining market direction. FIIs continued their buying activity for the tenth consecutive session on Friday, purchasing Indian equities worth Rs 5,736.55 crore, according to provisional NSE data.

Crude oil prices will also remain in focus as geopolitical developments in the Middle East create uncertainty over global energy supplies. Brent crude is currently hovering near $96 per barrel.

Meanwhile, global technology stocks will attract attention ahead of Nvidia’s quarterly earnings announcement scheduled for Tuesday, November 17. The company’s financial performance and management commentary could influence sentiment surrounding the global artificial intelligence industry.