The direction of the stock markets will be decided this week by the Russia-Ukraine war, the situation of COVID-19 in China and crude oil prices. Analysts have expressed this opinion. Analysts say that since there are no major domestic developments during the week, the market direction will be determined by the global trend.
Analysts said the uptrend in the stock markets would continue this week as foreign institutional investors (FIIs) could invest aggressively. Ajit Mishra, Vice President – Research, Religare Broking said, “In the absence of any major movement on the global front, the direction of the market will be determined by the Russia-Ukraine war, the COVID situation in China and crude oil prices. Apart from this, market participants will also keep an eye on FII inflows.
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He said that if the Russia-Ukraine war intensifies and the situation of COVID-19 in China worsens, the sentiment here will also be affected. Santosh Meena, Head of Research, Swastika Investmart said, “Our market is in a better shape than other emerging markets. We have seen a strong correction at lower levels. So FIIs can probably assume that they have missed some opportunity. Due to this, FIIs can come back aggressively in the Indian markets.
He said that the market has already recognized that the Russia-Ukraine issue may end soon. But all eyes will be on the news related to this issue and there may be some volatility in the market. The 30-share BSE Sensex rose 2,313.63 points or 4.16 percent last week. Markets were closed on Friday on Holi.
Yesha Shah, Head of Equity Research, Samco Securities, said there are no major developments on the domestic front this week. In such a situation, the direction of the local markets will be decided by the global trend. He said crude oil prices play an important role in deciding India’s macro stance. All eyes will also be on crude oil prices.
Kotak Mahindra Life Insurance Company Ltd. Hemant Kanawala, Head of Equity, said, “We believe that the market will be in a consolidation phase in the near future. Investors will be watching global developments and the upcoming quarterly results season.