Participants will keenly watch fate of GST Bill in Parliament.
It's also important to understand the rationale behind choosing particular stocks and when to sell.
On Wednesday, FIIs sold shares worth Rs 1,573 crore.
Avoid fresh investments, as there might be more opportunities in the coming months, market experts tell Joydeep Ghosh
Analysts say markets to be impacted by monsoon, inflation trajectory.
While selling started in April, it has intensified this month, with FPIs pulling out $1.1 billion and $2.5 billion from equities and debt market, respectively
FIIs pump in $1.4 billion in March, after pulling out $2.9 billion in Jan-Feb.
Demonetisation, Donald Trump's surprise victory in the US presidential elections, and the fear that US Fed may hike rates in the upcoming policy review in December have dented market sentiments, report Puneet Wadhwa & Deepak Korgaonkar.
Since 2005, in 8 out of 10 years (except in CY11 and CY14) the benchmark indices have given positive returns in December.
There have been demands from a section of stakeholders that the long-term capital gains tax on equities be reimposed.
The sentiment around Indian equities remains positive and unchanged.
CBDT circular issued last month had raised multiple taxation concerns.
This route accounts for Rs 2.75 lakh crore of FPI holdings.
It won't be an easy ride for the markets, reckon experts, considering the multiple state elections in 2018 and general elections next year.
A total of 183 stocks rallied 10 per cent, of which 32 stocks saw price appreciation of 20 per cent each.
Since its peak, the S&P BSE Sensex has dropped nearly 3,000 points.
Pressure on the government increased with the Reserve Bank of India's surprise move on Thursday to cut interest rates
The adjustment orders for AY2012, are expected between January and March 2016.
Given the developments, analysts do not foresee a quick recovery.
Only six sectors are likely to report good set of numbers in Q4 FY15.
Sharp swings likely in equity, forex and bond markets.
The year 2014 has been one of the best for investors in the equity markets.
The past decade saw three full cycles of markets moving up and then going into bear phases.
The market direction will be guided by corporate earnings, especially the oil & gas companies, since they were responsible for earnings disappointment in the past quarter as well.
Analysts expect global markets to remain in consolidation mode with a negative bias over the next six months.
Analysts mostly prefer domestic plays beside select films with foreign exposure.
The derivatives expiry on Thursday is also expected to add to the volatility.
There are a few factors that can spoil the party
Over the past four quarters, the Sensex companies' earnings trajectory has improved sharply because of a weak rupee.
Foreign investors are betting top dollar on the country as growth is likely to recover at a time when other emerging markets are battling macroeconomic adjustments.
India has more service companies, such as IT and healthcaresectors, which always trade at a premium to the overall market.
Offloading shares in ONGC, CIL, NHPC may fetch govt more than the year's target.
The referendum will have long-term implications for Indian companies, which earn a substantial portion of revenue from the region.
Higher growth, reform bets have boosted returns but leave limited room for error.
Experts hail Budget 2015 as a progressive, growth oriented one.