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Business News/ Market / Stock-market-news/  Markets may be volatile on F&O expiry, global headwinds seen to continue
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Markets may be volatile on F&O expiry, global headwinds seen to continue

Reacting to US President Donald Trump's failure to overhaul the health care system, Asian markets are already feeling the jitters on Monday

Analysts expect the markets to be volatile as March Futures and Options (F&O) series expires on 30 March. Photo: Hemant Mishra/MintPremium
Analysts expect the markets to be volatile as March Futures and Options (F&O) series expires on 30 March. Photo: Hemant Mishra/Mint

Mumbai: The markets are likely to be volatile in the last week of financial year 2016-17 while global headwinds may continue to stay. Reacting to US President Donald Trump’s failure to overhaul the health care system, Asian markets are already feeling the jitters on Monday.

“Domestic indices could ride over the rising uncertainty in US markets for delay in US tax reforms and lack of support to roll-back Obamacare bill. Overall, we expect benchmark indices to remain volatile," said Abnish Kumar Sudhanshu, director & research head, Amrapali Aadya Trading & Investments.

Analysts expect the markets to be volatile as March Futures and Options (F&O) series expires on 30 March.

Rakesh Tarway, head of research, Reliance Securities, said, “With the derivatives expiry and financial year end scheduled during the next week, we expect markets to be very volatile. We expect an extensive movement in the current week and sustenance above levels of 8,980 to 9,000 will be watched for the up-move."

Goods and services tax (GST) bill, which is in the last leg of clearance, will be tabled in the Parliament this week. Any further movement on GST’s passage could cheer up indices further.

As the year draws to a close this week, there could be more dividends especially by state-run firms. In a hasty move, Coal India Ltd (CIL) has declared interim dividend of Rs1.15 per share on Sunday. This is in addition to the interim dividend of Rs18.75 per share, it had declared earlier in March itself. The government owns around Rs79.78% in CIL.

In stock-specific action, investors may react to market regulator Securities and Exchange Board of India, or Sebi’s decision to bar Reliance Industries Ltd (RIL) and 12 other entities from trading in the F&O segment for one year. RIL has been asked to pay Rs447.27 crore along with an annual interest of 12% dating back to 29 November 2007, which translates into a penalty of around Rs1,300 crore.

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Published: 27 Mar 2017, 08:22 AM IST
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