Mumbai: Indian markets are likely to take cues from global markets in the week ahead, and investors will also closely watch the developments on the Rs11,400 crore fraud at state-run Punjab National Bank.
Trade is likely to be volatile as monthly derivatives contracts expire on Thursday, and traders hunt for a direction for the Indian market, which was recently hammered due to a correction in world equity markets.
With December quarter earnings season out of the way, the PNB saga is likely to take centrestage on the domestic front.
The finance ministry is working with the Prime Minister’s Office to resolve the Rs11,400 crore scam and the government will try to extradite and punish Nirav Modi—alleged to be behind the fraud, Press Trust of India reported on Saturday, citing minister of state for finance Shiv Pratap Shukla.
So far, State Bank of India, UCO Bank, Allahabad Bank and Union Bank of India have disclosed their exposure to the PNB fraud.
Meanwhile, there may be some respite for investors as the Goods and Services Tax (GST) Council is set to revamp the return filing process and further liberalize rules to make compliance easier for taxpayers and boost government revenues.
Global markets will have a close look at the minutes of US Federal Reserve’s January policy, the last by the previous chairperson Janet Yellen.
It remains to be seen if foreign institutional investors (FIIs), who had taken a back seat in February, return to riskier bets.