Equity markets are expected to experience a gradual upward movement this week, accompanied by some volatility, as the election and earnings seasons approach their conclusion, according to analysts.
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The monthly derivatives expiry on Thursday is likely to add to the market volatility.
"We are nearing the end of the Q4 earnings season, with major companies like Tata Steel set to release their financial results this week. Positive earnings from the final quarter could bolster the market's bullish momentum.
"The upcoming Lok Sabha election results are expected to boost FII flows," said Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd.
The results of the ongoing general elections will be announced on June 4.
On the global front, upcoming economic data from Japan and the US, along with movements in the global currency market, will be important factors to watch, he added.
"Overall, we anticipate a gradual up-move in the market with some volatility this week as both the election and earnings seasons near their end," said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd.
Domestically, the GDP growth rate for the June quarter will be announced on Friday. Last week, the BSE benchmark surged 1,404.45 points, or 1.89 percent, while the NSE Nifty rose by 455.1 points, or 2 percent.
The 30-share BSE Sensex reached an all-time intra-day high of 75,636.50 on Friday. The NSE Nifty crossed the 23,000 mark for the first time, hitting a lifetime peak of 23,026.40 during the day.
"The domestic market is reaching new highs, with large caps playing a secondary role to the broader market rally, indicating sustained momentum in the short term," said Vinod Nair, Head of Research at Geojit financial services.
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