Sensex, Nifty fall amid higher volatility; F&O expiry, GDP numbers to guide market

This week, market participants will watch out monthly F&O expiry on February 29, quarterly GDP figures, PMI manufacturing data, and auto sales numbers

Benchmark indices the Sensex and the Nifty started the February 26 trade on a negative note as volatility jumped ahead of the monthly F&O expiry. The market is expected to remain volatile in the coming days as valuations remain on the higher side, analysts said.

The Sensex and the Nifty fell 0.1 percent each to 73,017 and 22,181 on opening deals amid weakness in banking stocks. India VIX, which measures market volatility, jumped over 4 percent to trade above 16 level.

Follow our live blog for all the market action

"There can be days of sharp corrections going ahead as market valuations remain elevated. However, strong retail investor activity will keep market's bullish sentiment intact in the long term," said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

During the week, market participants will watch out for monthly F&O expiry on February 29, quarterly GDP figures, PMI manufacturing data and auto sales numbers.

The movement in US bond yields, dollar index and crude oil prices will continue to influence market dynamics.

Meanwhile, broader markets outperformed benchmarks as Nifty Midcap 100 and Nifty Smallcap 100 indices gained up to 0.4 percent within the first hour of trade.

Sectorally, Nifty IT and Nifty Realty indices were the worst hit as they declined up to a percent on February 26 opening deals. On the flipside, Nifty Media index managed to trade with slim gains.

ALSO READ: Stockology: Markets to remain range-bound volatile, big dip cannot be ruled out

Technically, Anand James, Chief Market Strategist, Geojit Financial Services said that large swings or muted sideways moves will be ordeal for this week, rather than a directional play. "For the day, Nifty needs to push beyond the congestion resistance of the 22,240-280 region to signal strength," he added.

Global markets exhibit strength

On Friday, all major averages in the US markets ended on a mixed note as AI poster child Nvidia kept artificial intelligence stocks steamy. Dow Jones and the S&P 500 eked out record closing highs of 39,131 and 5,088, respectively, while tech-heavy NASDAQ Composite declined 0.2 percent.

Asia-Pacific markets also traded higher this morning, with Japan's Nikkei 225 index hitting new record high, while broader Topix added 0.8 percent. Additionally, Hong Kong's Hang Seng was up 0.1 percent, while Australia's S&P 200 rose 0.2 percent.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.