Global trends to guide markets; indices may remain range-bound this week: Analysts

Markets had registered sharp gains post the Union Budget, but last week profit-taking was witnessed.

In view of lack of any major domestic event, equity markets this week are likely to follow global trends for further direction and may remain range-bound, according to analysts.

The BSE benchmark Sensex rallied 617.14 points or 1.22 per cent to close above the 51,000-mark for the first time on Monday REUTERS/Francis Mascarenhas/File photo (REUTERS)

Markets might also witness volatile trade amid monthly derivatives expiry.

"We expect the domestic market to continue following the global markets this week due to lack of any major domestic events," said Vinod Nair, Head of Research at Geojit Financial Services.

Going ahead, markets are expected to remain dull and range-bound Nirali Shah, Head of Equity Research, Samco Securities said, adding that investors should trade cautiously in benchmark indices and take note of any major movements in global markets.

During the last week, the BSE benchmark declined 654.54 points or 1.26 per cent.

"Markets continued their optimism at the start of the week but due to lack of any motivation the selling pressure took over after Nifty-50 hit its new lifetime highs. Indian equity markets continued to move in-tandem with international indices especially the US," Shah noted.

Analysts also added that other crucial factors like movement in Brent crude, rupee and investment trend of foreign institutional investors would also influence trading sentiment.