Stock Market News: In the absence of any major developments on the domestic front, the direction of the stock markets this week will be decided by the global trend and the activities of foreign investors. Experts have expressed this opinion. They said that due to the settlement of monthly derivative contracts, some volatility may be seen in the market this week.
The Fed Reserve cut interest rates
The local stock market witnessed a record rally last week after the US central bank Federal Reserve cut key interest rates by 0.50 percent. Santosh Meena, Head of Research at Swastika Investmart Ltd, said that historically, interest rate cuts in the US have had a positive impact on emerging markets and India has emerged as a favorite destination among global investors.
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FPI invested Rs 14000 crore
He said that foreign institutional investors (FIIs) made aggressive purchases during the week. On Friday alone, FIIs invested more than Rs 14,000 crore in the Indian stock markets. He said, “There is no major indicator to guide the market this week. However, US macroeconomic data will remain important for the market. FII flow will remain an important factor for the Indian stock market, as well as everyone will keep an eye on domestic institutional flow. “
What is the opinion of experts
Meena said, “Although the market does not seem to be affected by geopolitical risks at the moment, it can pose a big threat to the market in the future. The market may see volatility due to derivative settlement.” Last Friday, the 30-share BSE Sensex closed at an all-time high of 84,544.31 points with a jump of 1,359.51 points or 1.63 percent. During the day’s trading, it had climbed 1,509.66 points or 1.81 percent to reach its all-time high of 84,694.46.
The stock market made records last week
Similarly, on the same day, the National Stock Exchange’s Nifty rose 375.15 points or 1.48 percent to close at a record high of 25,790.95 points. During the day’s trading, the Nifty rose 433.45 points or 1.70 percent to reach an all-time high of 25,849.25 points. Last week, the Sensex gained 1,653.37 points or 1.99 percent. On the other hand, the Nifty jumped 434.45 points or 1.71 percent.
Siddharth Khemka, Head of Research (Asset Management), Motilal Oswal Financial Services, said, “The market is gradually moving up. We expect its positive momentum to continue this week as well due to strong FII inflows, healthy domestic macro factors and declining concerns about a slowdown in the US economy.”
Experts say that the movement of rupee against the US dollar and fluctuations in the prices of global oil benchmark Brent crude will also affect the direction of the market. Religare Broking Ltd. Senior Vice President-Research Ajit Mishra said, “Although the major event of interest rate cut by the Federal Reserve is behind us, everyone’s focus will remain on America for the direction of the market going forward. Apart from this, investors will also keep an eye on the flow of foreign funds and fluctuations in crude oil prices.”
(This is not an investment advice. The stock market is subject to risks. Please seek expert advice before making any investment.)