Stock Market Outlook: Will people lose crores of rupees in the market this week too or will there be a boom, know what the experts are saying

Trading activities of foreign investors (FIIs) and global trends will be the key driving factors for the upcoming stock markets. Major stock exchanges BSE and NSE have declared a trading holiday on November 20 for the assembly elections in Maharashtra. Elections for the 288-member Maharashtra Assembly will be held on November 20 and counting of votes will be held on November 23. Pravesh Gaur, Senior Technical Analyst, Swastika Investment Ltd, said, “Indian stock market will remain closed on Wednesday, November 20 due to Maharashtra Assembly Elections. Key global economic indicators including election results, US bond yields, dollar index performance, US unemployment claims, latest manufacturing and service PMI data, and Japan inflation data will be important in shaping the market direction.”

FII’s stance is important

He said, “Higher yields on bonds in the US and strengthening of the dollar after the elections have impacted emerging markets like India, and FII (foreign institutional investor) activity remains a key factor influencing Indian equities in the near term.” Experts said the movement of global oil benchmark Brent crude and the rupee-dollar trend will also influence market trades. “This week is also a short one due to the holiday, and with the earnings season almost over, the focus will again shift to FII flows. Foreign institutional investors have been selling continuously for the last one and a half months. Additionally, traders will keep a close eye on global market trends,” said Ajit Mishra, senior vice-president-research, at Religare Broking Ltd.

Big drop last week

Last week, the BSE benchmark index Sensex fell 1,906.01 points or 2.39 percent. The stock markets were closed on Friday on the occasion of Guru Nanak Jayanti. The BSE benchmark index closed with a massive fall of 8,397.94 points or 9.76 percent from its all-time high and the Nifty also fell 2,744.65 points or 10.44 percent from its record high. The Sensex had hit its record peak of 85,978.25 on September 27 this year and the NSE Nifty also hit a record level of 26,277.35 on the same day. The sharp fall in the benchmark indices was due to foreign investors fleeing the domestic market, weak second-quarter earnings, and high valuations of equities.