Market Volatility May Rise Amid Expected Announcement of New US Tax Policy

Indian equity markets closed last week on a subdued note, with the Nifty and Sensex declining nearly 0.7 per cent each, settling at 24,853 and 81,721 respectively.

- RITWIK MUKHERJEE

This pullback follows a robust 4 per cent rally the previous week.

In contrast, the Bank Nifty index edged up by 43 points buoyed by positive sentiments in banking heavyweights. Despite the downturn, the Nifty continues to trade above its key moving averages, including the 21-day and 200-day EMAs, indicating underlying strength, said Puneet Singhania, Director at Master Trust Group.

Going forward, particularly in the coming weeks, Indian markets are likely to remain influenced by a mix of global and domestic cues. Volatility may rise amid the expected announcement of a new US tax policy, which could impact global investment flows in the long run. On the domestic front, the Q4 FY25 earnings season continues to be a key focus, with investors closely tracking management commentary and sectoral trends.