domestic In the absence of any major developments on the front, the direction of the stock markets this week will be decided by the global trend and the activities of foreign investors. Analysts have expressed this opinion. He said that due to the settlement of monthly derivative contracts, some volatility may be seen in the market this week. Last week, the local stock markets witnessed a record rise after the US central bank Federal Reserve cut the key interest rates by 0.50 percent. Santosh Meena, Head of Research, Swastika Investmart Ltd, said that historically, the reduction in interest rates in the US has had a positive impact on the emerging markets and India has emerged as a favorite destination among global investors.
FII did aggressive buying
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, the US macroeconomic data will be 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. 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 going forward. The market may see volatility due to derivative settlement.
The market is at an all-time high
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 climbed 1,509.66 points or 1.81 percent to reach its all-time high of 84,694.46. Similarly, on the same day, the National Stock Exchange's Nifty closed at a record 25,790.95 points, up 375.15 points or 1.48 percent. During the day's trading, the Nifty reached an all-time high of 25,849.25 points with a gain of 433.45 points or 1.70 percent. Last week, the Sensex was up 1,653.37 points or 1.99 percent. On the other hand, the Nifty jumped 434.45 points or 1.71 percent.
Market is slowly rising
Motilal Oswal Financial Services' Head of Research (Asset Management) Siddharth Khemka 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 decreasing concerns about a slowdown in the US economy.” Analysts say that the movement of the rupee against the US dollar and fluctuations in the prices of global oil benchmark Brent crude will also affect the market direction. Religare Broking Ltd. Senior Vice President-Research Ajit Mishra said, “Although the major event of interest rate cuts by the Federal Reserve is behind us, everyone's focus will remain on the US 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.”
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