The return of global volatility and the slowdown in domestic economic activity may once again haunt domestic investors. Stocks are expected to see a sharp increase in volatility this week after President Trump said he was considering new tariffs on Chinese goods.
The announcement caused a rumble in global markets and could also mark a U-turn in sentiments, which so far had helped the markets rally past levels of 9800.
The mood may further turn sombre after two of India’s biggest companies reported weaker-than-expected earnings growth last week.
Hindustan Unilever Ltd announced a massive 7% drop in volume growth, while profits of Reliance Industries Ltd were hit due to a significant decline in margins.