share market
Global trends and activities of foreign institutional investors (FIIs) will decide the direction of local stock markets this week. Analysts have expressed this opinion. Apart from this, the market will also react to the results of Maharashtra and Jharkhand assembly elections on Monday. Last week on Friday, there was a strong rise in Sensex and Nifty after several weeks of decline. That day, Sensex and Nifty recorded their highest single-day gains in five months. On Friday, the 30-share BSE Sensex rose 1,961.32 points or 2.54 percent to 79,117.11. At the same time, Nifty of National Stock Exchange stood at the level of 23,907.25 points with a gain of 557.35 points or 2.39 percent.
pressure on rupee
Swastika Investmart Ltd. Santosh Meena, head of research at , said, “On the domestic front, the results of Maharashtra and Jharkhand elections are important for the market direction. Especially Maharashtra where the National Democratic Alliance (NDA) has registered a unilateral victory. However, global factors will continue to pose risks to the market. The rising tension between Russia and Ukraine and rising crude oil prices have increased concerns about inflation. Meena said that the strengthening of the US dollar index and the rise in US bond yields are putting pressure on the rupee, due to which foreign institutional investors are facing pressure on the rupee. There are record withdrawals from investors (FIIs).
FII inflow important
He said that FII inflows will be important for the direction of the market. The ruling Mahayuti alliance and the India alliance in Jharkhand have retained their power in the Maharashtra elections. Analysts say that global crude oil prices and rupee-dollar fluctuations will also affect the market. Meena said that globally, US Gross Domestic Product (GDP) data and details of the Federal Open Market Committee (FOMC) meeting will also play an important role in guiding investor sentiment.
Election results positive for the market
Master Capital Services Ltd. Director Palka Arora Chopra said that the Maharashtra election results are overall positive for the Indian stock markets. This will especially benefit sectors related to infrastructure development. Religare Broking Ltd. Ajit Mishra, senior vice-president (research), said, “Macroeconomic indicators including GDP will be important for the market. “Market participants will keep an eye on FII flows, especially given their selling in recent times.”
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