Stock Market Outlook: April wholesale inflation data, global trends and quarterly results of companies will decide the direction of the stock markets this week. Analysts have expressed this opinion. Apart from this, market participants will also keep an eye on the attitude of foreign investors (FIIs), who have remained sellers in the domestic markets for the last few days.
What is expert opinion?
Santosh Meena, Head of Research, Swastika Investmart said, “Inflation and tightening of their monetary stance by central banks are a matter of concern for markets across the world. The bears are dominant in the local market, but they have sold some excess, which may change their trend.” Meena said, “Selling is going on in the US market. Investors in particular are selling technology stocks. However, there has been some stability in the last two trading sessions. In such a situation, some relief can be expected. However, some stock-specific movements may be observed in view of the companies’ fourth quarter results.
Also read- 23 paise share became 9 rupees, in a year 1 lakh of investors became 6.90 lakh rupees
LIC IPO will be listed
On the domestic front, he believes that the initial public offering (IPO) of Life Insurance Corporation (LIC) to be listed on May 17 could prove to be a major catalyst. He said that since FIIs are selling, domestic institutional investors (DIIs) can try to make up for it. In such a situation, everyone’s eyes will also be on his stand. Apart from this, the trend of dollar index, crude oil prices and rupee volatility will also be important for the domestic markets, he said. Analysts say investors will also keep an eye on the April wholesale inflation data, which is due on Tuesday.
The results of these companies will come
Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities said rising yields on bonds, higher inflation levels and tightening of monetary stance by central banks globally will weigh on the market sentiment in the near future. He said that some stock-specific movements may be seen due to the quarterly results. Quarterly results of Bharti Airtel, DLF, Indian Oil Corporation, ITC, IDFC, JK Tire & Industries and NTPC are due this week.
Also read- Disinvestment going slow! These companies are in the line of privatization… the government has to raise ₹ 65,000 crore
Heavy fall in the market last week
Last week, the 30-share BSE Sensex fell 2,041.96 points or 3.72 per cent. On the other hand, Nifty lost 629.10 points or 3.83 percent. Vinod Nair, Head of Research, Geojit Financial Services, said the markets were volatile last week due to the weakness of the rupee, high inflation and the lockdown in China. He said that going forward, the pace of decline in inflation will determine the direction of the market due to the Federal Reserve’s measures.