Markets are likely to remain under pressure in the holiday-shortened week ahead with investors tracking the Yes Bank crisis and the coronavirus outbreak which have cast a shadow over trading sentiment, analysts said.
Equity markets would remain closed on Tuesday for 'Holi'.
Several key macroeconomic data announcements are also scheduled during the week. Industrial production and retail inflation rate will be released on Thursday and WPI inflation on Friday.
"Given the volatility and fearful psychology, market participants are likely to drift away and reduce their exposure to equities till clarity emerges on financial distress (Yes Bank and Covid-19)," Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote said.
Markets are expected to remain low with subdued interest and little activity from active investors, he added.
"Indian equity market continued its sharp slide for the second consecutive week on fears of fast spreading coronavirus cases outside China and Yes Bank crisis and its repercussions on the financial system. Till we see a semblance of normalcy returning, markets are likely to remain under pressure and highly volatile. Fluctuations in FII equity flows can also add to volatility," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
Religare Broking, VP - Research, Ajit Mishra said, "We continue to maintain our cautious view on Indian markets and expect volatility to remain high in the near term. The updates on spread of coronavirus cases would be the single biggest factor dictating global markets going forward. On the domestic front, updates on resolution plan for Yes Bank along with spread of coronavirus cases would be actively tracked by traders and investors."