Market may remain volatile ahead of F&O expiry

High volatility is expected next week as traders roll over positions in futures & options (F&O) segment from the near-month December 2011 series to January 2012 series. The near-month December 2011 F&O contracts expire on Thursday, 29 December 2011.

Foreign institutional investors (FIIs) have been sellers in domestic equities recently. The slowing domestic economic growth, high fiscal deficit, current account deficit and government's policy inaction remain a cause for concern.



The winter session of parliament, which was to end on Thursday, 22 December 2011, has been extended till 29 December 2011 to discuss Lokpal Bill. Besides the Lokpal bill, the whistleblower bill and judicial accountability bill will also be discussed in the extended session.

The government will on Thursday, 29 December 2011, unveil data on some wholesale price indices viz. the food price index, the primary articles index and the fuel price index for the year through 17 December 2011.

Automobile and cement stocks will be in focus ahead of the release of sales data for December 2011, which companies from these two sectors will start unveiling from 1 January 2012.