Mumbai, May 31 (IANS). Indian stock markets ended the week with vigilance, which was the second consecutive week of consolidation. Analysts said on Saturday that the market’s performance was sluggish amid fears of global trade stress and domestic policy development.
The benchmark index, Sensex and Nifty, with the reaction of investors in the Reserve Bank of India (RBI )’s upcoming monetary policy decision on the US tariff, saw a full week fluctuations in the benchmark index, Sensex and Nifty, which eventually closed in red mark.
Nifty closed on Friday (May 30) on the last trading day of the week at 24,750.70 and the Sensex at 81,451.01.
Ajit Mishra, Senior Vice President (Research), Railways Broking Limited, said, “Despite domestic signals, mixed indications from global markets affected the notion of investors. Initially, RBI’s recorded dividend payment and optimism were maintained after positive updates about monsoon.”
The sectoral performance remained mixed as per the overall market consolidation.
The reality index continued its lead for the third consecutive week, while banking and energy sectors also closed in green mark.
In contrast, FMCG, auto and metal stocks performed poorly and emerged as top backward shares.
Despite the ups and downs in the broad market, both the midcap and the smallcap were successful in registering a gain of about 1.5 percent.
According to Vinod Nair, a research head of the Giusan Investments Limited, the temporary break on US President Donald Trump’s reciperook business policies and then re -implemented, the business tension can force the global market to face comprehensive economic concerns, which can also affect the emerging markets.
Nair said, “Domestic economic indicators remain favorable and can be helpful in preventing the decline. Such as better monsoon forecasts, stagnation of inflation rate and a better fourth quarter of 7.4 percent GDP growth. The market is expecting a deduction of 25 BPS, which will improve outlook for rate-sensitive sector.”
All eyes will be on the results of the meeting of the RBI Monetary Policy Committee to be held on 6 June. The central bank’s attitude towards rates will be important in shaping the direction of the market.
Additionally, with the onset of the new month, market participants will track high-frequency data including auto sales and other economic indicators.
Monsoon progress and foreign institutional investors (FII) flow trends will also be closely monitored.
Analysts stated that at the global level, any update about development and ongoing trade talks in the US bond market will continue to affect the sentiments of investors.
-IANS
SKT/ABM
