Fluctuations are possible in the stock market this week. F&O expiry, GDP and foreign data, as well as Trump’s 15% tariff decision will increase investor caution. All these factors can affect the direction of the market.
Stock Market: This week may again prove to be full of ups and downs for the stock market. Domestic economic data, monthly futures-options (F&O) expiry and Donald Trump’s tariff decisions in the US may increase investor caution. Experts believe that all these factors together will influence the direction of the market.
Domestic figures and impact of F&O expiry
Ajit Mishra, Senior Vice President, Religare Broking, says that the monthly F&O expiry is going to happen on February 24, due to which there may be more volatility in the market. On the domestic front, GDP figures, government budget data, year-on-year numbers of foreign exchange reserves and infrastructure output are due this week. With these data, investors will be able to understand the earnings pace of companies and the possible direction of the market.
New tension due to Trump’s tariffs
US President Donald Trump on Friday imposed 10 percent tariff on India along with many countries for 150 days after the Supreme Court’s decision. The very next day it was increased to 15 percent. This is expected to create new obstacles in trade and impact global markets.
However, the US Supreme Court said that the tariffs imposed by Trump are illegal. The court said that the President crossed the limit by using the International Emergency Economic Powers Act of 1977. This could become a challenge for his big economic plans for his second term.
According to Ajit Mishra, investors will closely watch the impact of this new executive order. This could influence the trend, tariff structure and global risk mood.
Global environment and crude oil prices
Vinod Nair, Research Head, Jio Jit Investments, says that the status of US-Iran relations, fluctuations in crude oil prices and signals from global monetary policies will decide the direction of the market. Apart from this, India’s GDP data will help in predicting the pace of earnings of companies and how the market will position itself.
Last week’s market situation
Last week the mood in the domestic market was mixed. The 30-share BSE Sensex closed 187.95 points or 0.22 percent higher. Nifty was up 100.15 points or 0.39 percent. There was good buying in Banking, Financial Services, Power and select FMCG stocks, which reduced the impact of global uncertainty.
There was pressure on shares of IT sector. AI-related challenges and impact on margins remain a cause for concern. However, the market ended on a positive note due to strength in major stocks, investment in certain sectors and optimism over India’s stake in Pax Silica.
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