Markets to move according to Omicron, FIIs and global cues this week, say analysts

Following spreading of  COVID-19 variant Omicron, market analysts are w expecting week’s market movement to be surrounding same. According to analysts, domestic equities will be mainly driven by global market trends, foreign institutional investors' movement and developments around new COVID strain spread. Market observers also ted that trade markets have been under pressure due to outbreak.

Markets traded under pressure last week following weak global cues, y observed. analysts also ted that overall investor sentiment remained downbeat throughout week. Earlier, US market suffered a significant drop following Omicron variant’s spread causing tension among or market investors.

Analysts says volatility will continue, urges to follow FII activity to assess trends

"Global markets, Omicron variant, dollar index and FIIs' behaviour will be key factors to drive market this week," said Santosh Meena, Head of Research, Swastika Investmart Ltd as cited by PTI. Meanwhile, expert researcher also ted that US Federal Reserve's anuncement that it will end bond-buying from March was a major event last week. " selling can be attributed to hawkish Fed, rising worries of Omicron, rupee weakness, and most importantly relentless selling by FIIs," Meena added.

Ajit Mishra, VP Research, Religare Broking ted that volatility in market will continue due to uncertainty around Omicron spread. "In absence of any major event, global cues will dictate our market trend. Participants are keeping a close watch on COVID-19 situation due to new variant and related updates will continue to induce volatility in days to come," Mishra said. Siddhartha Khemka, Head - Retail Research, Broking & Distribution, Motilal Oswal Financial Services Ltd. reiterated same by stating, "negative global cues, continued FII selling, absence of any positive trigger and increasing cases of Omicron are likely to continue putting pressure on market."

comments and observations from market analysts come after BSE benchmark tumbled 1,774.93 points or 3.01 per cent during last week. Sensex plummeted 889 points on Friday in line with a selloff in global markets following rise in Omicron cases. Yesha Shah, Head of Equity Research, Samco Securities ted that investors must look at FII activity to assess trends. "In absence of major domestic events, market will seek indications from global indices and macroecomic data, such as US GDP growth rate, to decide its movement. As global macros are expected to dominate, investors should keep an eye on FII activity to assess trends and stick to a stock-centric investing strategy in midst of range-bound index moves," Shah said as cited by PTI.

With PTI inputs

Im: PTI