Inflationary, geopolitical pressure rising on market

Mumbai: The market remained unpredictable with volatility induced by inflationary pressure and geopolitical factors. Benchmark indices are expected to be volatile in the last week of the financial year due to derivative expiry and profit taking at the end of the financial year by funds, said analysts.

On Friday the Sensex closed at 57362 down by 233 points or 0.39 per cent while the Nifty-50 closed at 17153 down by 69.75 points or 0.40 per cent.

Benchmark indices Sensex and Nifty-50 closed with marginal losses of 0.7 per cent for the week while broader markets remained positive where midcap and small cap index closed the week in the green. FIIs selling pressure has also eased considerably post US Fed's announcement and they have turned net buyers last week, said a report.
"Considering the monthly settlement, volatility may pick up again due to rollover activity and quarter ending fund rebalancing," said ICICI Securities.

Foreign investors behaviour still remained highly unpredictable with the week seeing some easing of the selling pressure.

Analysts are turning bearish on the equity market as some US market benchmarks (Nasdaq Index) have already entered bear territory and the US economy may face recessionary pressure.

"Markets are expected to be volatile and consolidate within a range in the short term. The eventual economic consequences of the Russia-Ukraine war will be understood only with time,” said Yesha Shah, head of Equity Research, Samco Securities.