The results of the Jharkhand and Maharashtra assembly elections have been made public. In both states, the current government has returned to power. Which is a positive sign for the market. In such a situation, it is expected that there will be an increase in activity on Dalal Street. Global trends and activities of foreign institutional investors (FIIs) will decide the direction of local stock markets this week.
Record broken in the last 5 months
On Friday last week, Sensex and Nifty saw a sharp rise after several weeks of decline. On that day, Sensex and Nifty recorded their biggest daily gain in five months. On Friday, the 30-share BSE Sensex rose 1,961.32 points or 2.54 per cent to 79,117.11. While the Nifty of the National Stock Exchange remained at the level of 23,907.25 points with a gain of 557.35 points or 2.39 per cent.
What do the experts say?
Santosh Meena, head of research at Swastika Investmart Limited, said that on the domestic front, the results of the Maharashtra and Jharkhand elections are important for the direction of the market. Especially in Maharashtra, where the National Democratic Alliance (NDA) recorded a unilateral victory. However, global factors will continue to pose risks to the market. Rising tension between Russia and Ukraine and rising crude oil prices have raised concerns about inflation.
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Meena said the strengthening US dollar index and rising US bond yields are putting pressure on the rupee, leading to record withdrawals by foreign institutional investors (FIIs). He said the entry of FII will be important for the direction of the market. The ruling Mahayuti alliance in the Maharashtra elections and the Indian alliance in Jharkhand have retained their power.
Investors will have to pay attention here.
Analysts say global crude oil prices and fluctuations between the rupee and the dollar will also affect the market. Meena said that globally, US Gross Domestic Product (GDP) data and Federal Open Market Committee (FOMC) meeting details will also play an important role in guiding investor sentiment. Master Capital Services Ltd. Director Palka Arora Chopra said that the Maharashtra election results are overall positive for the Indian stock markets. This will especially benefit sectors related to infrastructure development.
Religare Broking Ltd. Senior Vice President (Research) Ajit Mishra said macroeconomic indicators including GDP will be important for the market. Market participants will be keeping an eye on FII inflows, especially considering its sales of late. Last week, the 30-share BSE Sensex rose 1,536.8 points or 1.98 per cent. While the Nifty of the National Stock Exchange gained 374.55 points or 1.59 per cent.
