Factors that will guide the markets this week

Stock markets will take cues from trading activity of foreign investors and global trends this week with benchmark equity indices likely to face volatility amid the scheduled monthly derivatives expiry, analysts said.

Moreover, factors such as the progress of monsoon and Brent crude oil would also dictate investors' sentiment during the week.

"This week, sector-specific movements are anticipated amid budget-related buzz.

"Key factors to watch include the progress of monsoon, which will be closely monitored for its near-term impact on investors' confidence.

"Investors will also keep a close eye on FII (Foreign Institutional Investors) and DII (Domestic Institutional Investors) fund flows, as well as crude oil prices, to gauge overall sentiment," said Pravesh Gour, senior technical analyst at Swastika Investmart Ltd.

On the global front, economic data like the US GDP will be released on June 27, he added.

"Looking ahead, attention will remain on updates related to the budget and global market cues, particularly from the US," Ajit Mishra, senior vice-president, research at Religare Broking Ltd, said.

Volatility may be heightened by the scheduled expiration of June month derivatives contracts, he added.

Last week, the BSE benchmark climbed 217.13 points, or 0.28 per cent, while the Nifty went up 35.5 points, or 0.15 per cent.

"Overall, the market is likely to remain steady and consolidate at higher levels in the near term.

"Budget-related sectors are likely to remain in action," Siddhartha Khemka, head - retail research at Motilal Oswal Financial Services Ltd, said.

Shrikant Chouhan, Head, Equity Research at Kotak Securities, said market participants will keep an eye on the further progress of monsoon.

"Going ahead, focus will gradually shift towards budget and Q1 FY25 earnings," Chouhan added.