Quarterly earnings, COVID-19-related updates and global trends would drive sentiment in the equity markets this week and indices are likely to witness volatility amid derivatives expiry, say analysts.
Investors would also monitor trends in foreign investment, Brent crude prices and rupee movement, they said.
Stock markets have witnessed volatility recently due to a record spike in local coronavirus cases amid the second wave of the pandemic in the country.
The benchmark BSE Sensex declined by 953.58 points or 1.95 per cent in the last week as surging COVID-19 cases and growing localised restrictions continued to dent investor sentiment.
"We do not see the volatility easing out this week too, thanks to scheduled data and events. First, the monthly expiry of April month derivatives contracts will keep traders on their toes. On the data front, core sector data will be unveiled on April 30. Needless to say, the COVID-related updates will remain on the participants' radar," said Ajit Mishra, VP Research, Religare Broking.
With the progress of the earnings season, some big names like Axis Bank, Maruti, Bajaj Auto, Hindustan Unilever and Indusind Bank will announce their numbers this week.
Other major companies to announce their earnings are Tech Mahindra, Bajaj Finance, Hindustan Zinc, Titan Company and Reliance Industries Limited.
"Indian markets are likely to continue with volatility till COVID-19 cases continue the upward trajectory. Investors would continuously watch out government's course of action along with progress on the vaccination drive.
"This week, the market would also keep an eye on Fed's monetary policy along with GDP data of the US, which would influence the global market in near term," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd said.
Vinod Nair, Head of Research at Geojit Financial Services said that the movement will be stock-specific based on Q4 results and would be dictated by developments on the Covid spread.
Nirali Shah, Head of Equity Research, Samco Securities said that investors across the globe would keep an eye on the outcome of the FOMC meeting.
According to Hemant Kanawala, Head Equity, Kotak Mahindra Life Insurance Co. Ltd, "The focus of the investors and nation has shifted to the sudden rise in Covid cases. The pace of vaccination will be crucial for quicker normalisation of economic activity."
Meanwhile, investors would also continue to monitor the trend in the rupee, foreign institutional investors and Brent crude.