Unless inflation comes down, the sentiment will remain disturbed.
There is pressure on the market due to increase in interest rate amid inflation. Market experts say that unless there is peace in inflation, the sentiment of the stock market will not improve.
of april wholesale inflation ,Wholesale Price Index) data, global trends and quarterly results of companies will decide the direction of the stock markets this week. Analysts have expressed this opinion. Apart from this, the eyes of the market participants are foreign institutional investors (FIIs).Foreign Investors), which has remained a seller in the domestic markets for the last few days. Santosh Meena, Head of Research, Swastika Investmart said, “Inflation and tightening of their monetary stance by central banks are a matter of concern for the markets across the world. The bears dominate the local market, but they have sold some more, which may change their trend.
Meena said, selling is going on in the US market. Investors in particular are selling technology stocks. However, some stability has been seen in the last two trading sessions. In such a situation, some relief can be expected in the future. He said that in the absence of major developments on the domestic front this week, the direction of the market will be decided by the global trends. However, in view of the fourth quarter results of the companies, some stock-specific activities may be seen.
Can get support from domestic investors
He believes that on the domestic front, the initial public offering (IPO) of Life Insurance Corporation is to be listed on May 17 and this can prove to be a major catalyst. He said that FIIs are selling, so domestic institutional investors can try to make up for it. In such a situation, everyone’s eyes will also be on his stand. Apart from this, the trend of dollar index, crude oil prices and rupee fluctuations will also be important for the domestic markets, he said. Analysts say that investors will also keep an eye on the April wholesale inflation data, which is to come on Tuesday.
Market sentiment will remain disturbed for now
Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities said the rise in bond yields, higher inflation levels and tightening of monetary stance by central banks globally will weigh on the market sentiment in the near future. He said that some stock-specific activities may be seen due to the quarterly results.
Sensex down 2041 points this week
This week the quarterly results of Bharti Airtel, DLF, Indian Oil Corporation, ITC, IDFC, JK Tire & Industries and NTPC are to come. Last week, the 30-share BSE Sensex fell 2,041.96 points or 3.72 per cent. On the other hand, Nifty lost 629.10 points or 3.83 percent.
The direction of the market will be decided after the slowdown in inflation
Vinod Nair, Head of Research, Geojit Financial Services, said that due to the weakness of the rupee, high inflation and the lockdown in China, there was volatility in the markets last week. He said that going forward, the direction of the market will be determined by the rate of decline in inflation due to the measures of the Federal Reserve.