Stock markets may see volatile trading this week: Experts

Stock markets may see volatile trading this week amid expiry of derivatives contract on Thursday, experts said.

Besides, investment trend by overseas investors, global cues, movement of rupee against the dollar and crude oil price would continue to influence trading at the bourses.

"In near-term, market movement will depend upon the monetary policy review on September 30, where it is expected that the RBI will continue to exhibit status-quo stance on interest rates," said Vivek Gupta, CMT - Director Research, CapitalVia Global Research Limited.

Marketmen said in absence of any domestic triggers, participants would look at FII (Foreign institutional investors) investment and rupee movement against the US dollar.

"With the initial jitters around the US rate increase subsiding, markets are expected to rally ahead due to renewed optimism in the economy," said Aman Chowdhury, CEO & CO-Founder, Cians Analytics.

The US Federal Reserve Chairwoman Janet Yellen in the policy setting meeting promised to keep the interest rates near zero for a "considerable time after its bonds buying programme comes to an end in October, giving immediate relief to the emerging markets, including India, as fears of immediate capital outflows subsided.

Analysts said Prime Minister Narendra Modi's US tour from this week will also be closely watched by investors back home. Prime Minister Narendra Modi will be at the White House on September 29-30 for talks with US President Barack Obama.

Meanwhile, over the past week, the BSE benchmark Sensex gained 29.38 points to 27,090.42.