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Bulls have had a good time since last month in Dalal Street due to continued buying by foreign investors and better corporate earnings. However, a series of events, economic data points, and earnings are due next week, resulting in some likely volatility in markets despite the positive trend. The coming week will include a review by the Bank of England and earnings releases by many Indian companies, along with various macro data points and an MSCI index review. Additionally, investors will watch the primary market as Mankind Pharma is expected to debut.

Indian businesses are continuing to perform well, especially in sectors such as banks, auto, telecom, capital goods and industrials, according to Chandraprakash Padiyar, Senior Fund Manager at Tata Mutual Fund. While there are pockets of lower growth or profit margin impact, Padiar is optimistic about the ongoing strong numbers. The two-wheeler sector faces volume growth challenges, but some companies are reporting strong profit margins and profitability

With the initial reopening euphoria long gone and earnings lackluster, the next market catalyst is looking elusive.

One analyst called it the biggest announcement of the day: Berkshire won’t make an offer for full control of Occidental Petroleum Corp., the energy firm it has spent months boosting its wagers on.

The Securities and Exchange Board of India (SEBI) has announced a new framework for testing the IT systems used by market infrastructure institutions (MIIs), including stock exchanges, clearing corporates and depositories. The MIIs will undertake system testing, functional testing, and application security testing, which need to be approved by the Standing Committee on Technology of the respective institutions. The identified software bugs, issues or defects should be remediated immediately, while policies and procedures on the use of third-party systems or software codes should be established. MIIs will have 30 days to submit the testing framework of all their IT systems.

Like always, investors world over are looking forward to the meeting as Buffett and his good old friend Charlie Munger, who is the vice chairman of the world’s 6th most valuable company, will answer a plethora of questions from stakeholders.

Similarly, Options also have expiry (Monthly and weekly), and the Extrinsic value of Options becomes Zero. Just like in the case of cars, the premium keeps dropping exponentially every day.

Regulating finfluencers, or online advisors, will be a challenge for SEBI, says Dhirendra Kumar, CEO of Value Research. Finfluencers have gained influence thanks to technology and the democratisation of the media. To address the issue, they should disclose their relationships with stakeholders, says Kumar. However, it will be challenging to separate those with competence from those with malafide interests. He urges investors to assume they could be fooled and to seek rationale and explanation before investing in a financial product.

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A further correction in US markets could impact India, and the health of the US financial space presents challenges. However, Indian markets have managed to reverse flows for FIIs recently, providing support for the market. Small-cap banking names are likely to be challenging. Meanwhile, there remains concerns around commercial real estate in the US. HDFC twins fell 6% each last Friday, but financials remain attractive as the economy grows, and the sector is expected to lead the economy higher.