Russian-Ukrainian Tension Over Crude Oil Prices, List Of Factors To Guide The Market This Week

The stock market is expected to experience volatility, guided by global signals, the movement of the rupee and crude oil prices this week. Market participants will be watching the Russia-Ukraine crisis, which has weighed on global sentiment for the past few weeks. Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services Ltd, also said that there will be high volatility during the net market week due to the meeting between the US and the Russia, continued FII sales and monthly F&O expiry, etc.

“Volatility is also expected to remain elevated next week, given the crucial US-Russia meeting. Inflation concerns, continued FII selling and monthly F&O expiration could add to volatility next week. “, Khemka told the PTI news agency.

Meanwhile, Ukrainian President Volodymyr Zelenskyy called on Russian President Vladimir Putin to meet him and seek a solution to the crisis. “I don’t know what the president of the Russian Federation wants, so I’m suggesting a meeting,” Zelensky said at the Munich security conference, where he also met with US Vice President Kamala Harris.

Geopolitical tensions and risks of a rate hike by the US Federal Reserve have triggered outflows of foreign funds from Indian stock markets. Foreign investors withdrew a net amount 18,856 crore from Indian markets in February so far.

According to Shibani Kurian, Senior EVP & Head-Equity Research, Kotak Mahindra Asset Management Company, other things market participants will be looking forward to this week would be the price of crude oil and the pace of profit growth in India.

“Crude is on an uptrend and crude price trajectory alongside inflation in India and globally and the pace of earnings growth in India would be the key factors to watch,” Kurian said.

Additionally, the ongoing elections in Uttar Pradesh, Uttarakhand, Goa, Punjab and Manipur will also be closely watched by investors.

According to Milind Muchhala, chief executive of Julius Baer India, uncertainty over Fed action and growing expectations of a 50 basis point rate hike in March policy amid a sense of persistently high inflation, plagued the markets.

On Friday, the BSE Sensex closed 59.04 points or 0.10% lower at 57,832.97. The NSE Nifty edged down 28.30 points or 0.16% to settle at 17,276.30. On a weekly basis, the Sensex lost 319.95 points or 0.55% and the Nifty fell 98.45 points or 0.56%.

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Steve R. Hansen