Participants will also be monitoring developments in the NBFC space, which triggered a 1,100-point flash crash on Friday.
“We are likely to see some more consolidation given risk factors like a surge in oil prices, strengthening of the dollar and fiscal deficit worries.
“However, given sharp corrections, we expect value-buying to emerge in sectors /stocks where earnings outlook are healthy. For the week ahead, US FOMC meeting is the key event,” said Vinod Nair, Head of Research, Geojit Financial Services.
The Indian currency has witnessed a massive plunge in the recent past due to rising current account deficit in the wake of rising crude oil prices. Volatility will also be in play amid derivatives expiry on Thursday.
“US Federal Open Market Committee (FOMC) will announce the rate decision this week. After a sharp correction in recent times, we feel markets have touched an intermediate bottom. It is likely to consolidate,” said VK Sharma, Head PCG and Capital Market Strategy, HDFC Securities.
Over the last week, the Sensex lost a hefty 1,249.04 points, or 3.28% to end at 36,841.60. Benchmark indices finished with losses Friday after investors were jolted by a sudden mid-session plunge amid a massive sell-off in NBFC stocks.