Futures contracts expiry, foreign institutional investor (FII) flow trends, and development on COVID-19 vaccine front are likely to set the tone for Indian benchmark indices, Sensex and Nifty, this week. The market may see volatility this week as traders will adjust their F&O positions as November series contracts will expire on November 26.
Last week, the equity market witnessed some correction, but closed with net gains. Snapping three days losing streak, the 30-share BSE Sensex ended Friday's trade 282 points higher at 43,882 and Nifty rose 87 points to end at 12,859. During the week, Sensex and Nifty gained 439 points or 1.01 per cent and 139 points or 1.09 per cent, respectively.
Here are the top 5 factors that will lead the stock market in the upcoming week:
F&O expiry: The Indian benchmark indices may see volatility this week as traders will adjust their F&O positions ahead of November series contracts expiry due on November 26.
FII inflows: Foreign institutional investors (FIIs) have infused record Rs 46,251 crore into Indian markets in November so far. They have consistently bought shares in every trading session this month except the Laxmi Pujan day when they sold Rs 78.5 crore worth of shares. The end of uncertainty after the US Presidential election results along with strong corporate earnings seem to attract foreign funds into the Indian market.
Coronavirus cases and vaccine updates: The coronavirus case load and developments on the vaccine front will set tone for overall market momentum going ahead. The trial results of COVID-19 vaccines and progress associated with vaccine distribution will have impact on market movement.
Global cues: In absence of any major macro data release due this week, global cues will dictate the market trend this week. Market participants will keep an eye on US's macro reports - Chicago Fed National Activity Index, IHS Markit Services PMI Flash, corporate earnings, jobless claims, FOMC minutes - slated to be released this week.
Buzzing stocks: Shares of Gland Pharma, which made a stellar debut on bourses last Friday, will be in focus this week.