The US Fed Reserve Open Market Committee (FOMC) stance and the PMI to be released globally next week with the aim of establishing a balance between rising inflation and growth on the stock market, which has been hit by the downturn last week, going through ups and downs. The market will be affected. Last week, BSE’s 30-share sensitive index Sensex fell 136.28 points to 57060.87 points and National Stock Exchange’s (NSE) Nifty slipped 69.4 points to 17102.55 points on the weekend.
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Santosh Meena, Head of Research, Swastika Investmart said, “After the sharp fall in the US market, the market is likely to start this week on a sluggish start. Investors will again focus on the outcome of the FOMC meeting in the US. The FOMC meeting is to be held on Wednesday and the Indian market will react on Thursday. “Global indicators will dominate the market this week as the Bank of England (BoE) will also take a decision on the interest rate in addition to the FOMC meeting,” he said. Also US employment data and global PMI data are also due this week.
Besides the monthly vehicle sales figures this week, the fourth quarter results of big companies like Reliance, Britannia, HDFC Ltd, Adani Enterprises, Hero MotoCorp, Tata Steel, Titan, Kotak Mahindra Bank and Tata Power are also to come, he said. Ajit Mishra, Vice President – Research, Religare Broking said, “This week will be less business days due to holidays. Many important developments and figures are going to come during the week. Market investors will be the first to react to the vehicle sales figures.” Mishra said, “On the macro front, the manufacturing PMI and services PMI figures will be out on May 2 and May 5 respectively. The much-awaited IPO of Life Insurance Corporation (LIC) will open on May 4. On the global front, all eyes will be on the outcome of the US central bank meeting.
The country’s largest life insurance company LIC on Wednesday fixed the price range for its Rs 21,000 crore IPO at Rs 902-949 per share. The company’s IPO will open on May 4. Last week, the BSE 30-share Sensex fell 136.28 points or 0.23 per cent. Yesha Shah, Head of Equity Research, Samco Securities said, “Globally, the FOMC meeting will be under discussion. Any ‘surprise’ decision in this meeting could lead to a panic reaction in the global markets.” Siddharth Khemka, head of retail research, Motilal Oswal Financial Services, said that LIC’s big IPO will open on May 4. This could lead to a exit from the market and some selling pressure could be seen for some time.