On the domestic front, macroeconomic data, the Reserve Bank’s monetary policy review and developments related to the Russia-Ukraine war will decide the direction of the stock markets this week. Apart from this, the trend of foreign portfolio investors (FPIs) and volatility in crude oil prices will also decide the market sentiment. Analysts have expressed this opinion.
Santosh Meena, Head of Research, Swastika Investmart Ltd, said, “The Reserve Bank’s monetary policy will be an important factor for the Indian markets this week. It will also be important to see how FPIs behave in the new financial year after continuous selling in the second half of the last financial year. However, there has been a change in their stance last week.” Religare Broking Vice President-Research Ajit Mishra said that with the start of the new financial year, all eyes will be on the outcome of the Reserve Bank’s monetary policy meeting on April 8.
“On the macro front, PMI data for manufacturing and services will come on April 4 and April 6 respectively during the week,” he said. Mishra said that right now the local market is taking direction from the trend of global markets. The positive developments on the Russo-Ukraine war front could further improve the market. “We can see volatility in the price of a particular share,” he said.
Also read: ‘Small’ stocks gave ‘big’ returns in the last financial year, know how the trend will be ahead
Last week, the Sensex was up by 1,914.49 points, or 3.33 per cent, and the Nifty was up 517.45 points or 3.01 per cent. The stock markets on Friday started the new financial year with good gains. The Sensex on Friday gained over 708 points to reach the 59,000-mark. Yesha Shah, Head of Equity Research, Samco Securities, said, “The details of the FOMC (Federal Open Market Committee) meeting will come this week. This will affect the markets globally. On the domestic front, the Reserve Bank’s Monetary Policy Committee (MPC) meeting will decide the market sentiment.
In the last financial year, the BSE Sensex rose 9,059.36 points, or 18.29 per cent, while the Nifty gained 2,774.05 points or 18.88 per cent. Vinod Nair, Head of Research, Geojit Financial Services, said, “In the coming days, the market focus will be mainly on the Russia-Ukraine war, volatility in crude oil prices and policy announcements of the Reserve Bank.”