Suspense Crime Sach Ka Dam
Global trends and activities of foreign institutional investors (FII) will determine the direction of the local stock markets this week. Analysts have expressed this opinion. Apart from this, the market will also react to the results of the Maharashtra and Jharkhand assembly elections on Monday. On Friday last week, Sensex and Nifty saw a strong jump after several weeks of decline. On that day, Sensex and Nifty recorded their highest one-day gain in five months. On Friday, the 30-share Sensex of BSE rose 1,961.32 points or 2.54 percent to reach 79,117.11 points. At the same time, the National Stock Exchange’s Nifty was at the level of 23,907.25 points with a gain of 557.35 points or 2.39 percent.
Pressure on the rupee
Santosh Meena, Head of Research, at Swastika Investment Ltd., said, “On the domestic front, the results of Maharashtra and Jharkhand elections are important for the direction of the market. Especially Maharashtra where the National Democratic Alliance (NDA) has registered a one-sided victory. However, global factors will continue to pose risks to the market. Growing tensions between Russia and Ukraine and rising crude oil prices have raised concerns about inflation. Meena said that the strength in the US dollar index and the rise in US bond yields are putting pressure on the rupee, leading to record withdrawals from foreign institutional investors (FIIs).”
FII inflow is important
He said that FII flow will be important for the direction of the market. The ruling Mahayuti alliance has retained power in the Maharashtra elections and the All India Alliance in Jharkhand. Analysts say that the price of crude oil at the global level and the fluctuations in rupee dollars will also affect the market. Meena said that at the global level, the US Gross Domestic Product (GDP) data, and the details of the Federal Open Market Committee (FOMC) meeting will also play an important role in guiding the sentiment of investors.
Election results are positive for the market.
Palka Arora Chopra, Director, Master Capital Services Ltd. said that the election results of Maharashtra are overall positive for the Indian stock markets. In particular, it will benefit the sectors related to infrastructure development. Ajit Mishra, Senior Vice President (Research), at Religare Broking Ltd., said, “Macroeconomic indicators including GDP will be important for the market. Market participants will keep an eye on the flow of FIIs, especially given their selling in recent times.”
