The results of Jharkhand and Maharashtra assembly elections have come out. In both the states, the present government has returned to power. Which is a positive sign for the market. In such a situation, it is expected that there may be increased 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 last 5 months
Last week on Friday, there was a strong rise in Sensex and Nifty after several weeks of decline. On that day, Sensex and Nifty had recorded their highest one-day profit in five months. On Friday, the 30-share BSE Sensex rose 1,961.32 points or 2.54 percent to 79,117.11. Whereas the Nifty of National Stock Exchange remained at the level of 23,907.25 points with a gain of 557.35 points or 2.39 percent.
What do experts say?
Santosh Meena, Head of Research, Swastika Investmart Limited, said that on the domestic front, the results of Maharashtra and Jharkhand elections are important for the direction of the market. Especially Maharashtra where the National Democratic Alliance (NDA) has registered a unilateral victory. However, global factors will continue to pose risks to the market. The increasing tension between Russia and Ukraine and rising crude oil prices have increased concerns about inflation.
Meena said the strengthening of the US dollar index and rise in US bond yields are putting pressure on the rupee, leading to record withdrawals from foreign institutional investors (FIIs). He said that FII inflow will be important for the direction of the market. The ruling Mahayuti alliance in Maharashtra elections and the India alliance in Jharkhand have retained their power.
Investors will have to pay attention here
Analysts say that global crude oil prices and rupee-dollar fluctuations will also affect the market. Meena said that at the global level, America’s Gross Domestic Product (GDP) data and the details of the Federal Open Market Committee (FOMC) meeting will also play an important role in guiding investor sentiment. Master Capital Services Ltd. Director Palka Arora Chopra said that the election results of Maharashtra are overall positive from the point of view of Indian stock markets. This will especially benefit sectors related to infrastructure development.
Religare Broking Ltd. Senior Vice President (Research) Ajit Mishra said that macroeconomic indicators including GDP will be important for the market. Market participants will keep an eye on FII inflows, especially given their selling in recent times. Last week, the 30-share BSE Sensex rose 1,536.8 points or 1.98 percent. Whereas National Stock Exchange’s Nifty gained 374.55 points or 1.59 percent.
