New Delhi: Stock markets may witness volatility on account of derivatives expiry during the week beginning September 25 and the recent spike in tensions on the Korean peninsula, say experts. A fresh war of words broke out between the US and North Korea earlier this week, spooking investors. "As global tensions mount with North Korea pushing to a next level of tests with hydrogen bomb, it will be hard for bulls to have a comeback which was as swift as before. Also, we don't see any cues that can lead us to a decline in volatility," said Mustafa Nadeem, CEO of Epic Research.
Vinod Nair, head of research, Geojit Financial Services, said: "In the recent times, domestic market was the best performing among emerging markets due to strong reform agenda and stable policies."
"However, any meaningful uptick in corporate earnings and normalisation of global markets will be the key for supporting the current premium valuation. Though DIIs flows are very strong, but any earnings hiccups in coming quarters may limit these inflows."
On a weekly basis, the BSE benchmark index - Sensex - has recorded a hefty fall of 350.17 points, or 1.08 per cent - the biggest since August 11. The NSE Nifty settled lower by 121 points or 1.19 per cent for the week.
"With global equity markets in risk off mode over Korean tensions, the ongoing weakness has gained more momentum. Approaching F&O expiry has also added to liquidation pressure," said Anand James, chief market strategist, Geojit Financial Services Ltd.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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