Trading in the stock market in the week will be driven by global trends and the outlook of foreign investors, analysts said. The experts noted that the earnings season for the first quarter has almost ended.
The US Federal Open Market Committee (FOMC) will release the minutes of the meeting in the coming week. This is expected to weigh on the investors’ sentiments in the market. However, there are fewer announcements lined up ahead, reported PTI.
Santosh Meena, Head of Research, Swastika Investmart Ltd, noted that Japan will release the inflation data in the coming week. “The uncertain geopolitical situation remains the primary near-term risk for the market. Traders will also closely monitor institutional flows and crude oil price movement,” the expert commented.
Prashanth Tapse, Senior Vice President (Research), Mehta Equities Ltd, further said, “Easing fears of a recession in the US triggered a global market rally on Friday.Positive US economic data like cooling inflation and robust retail sales numbers shrugged off recession fears while talks of a rate cut by the US Fed as early as next month fuelled a mega rally across global equities, including India.”
Notably, the equity benchmark, BSE Sensex climbed 1,330.96 points or 1.68 per cent and closed at 80,436.84 in the last trading session on Friday. This marked the best single-day gain for the index in over 2 months. The NSE Nifty also gained 397.40 points or 1.65 per cent to end trading at a two-week peak of 24,541.15 on Friday. In the previous trading week, the Sensex surged 730.93 points or 0.91 per cent, while the Nifty jumped 173.65 points or 0.71 per cent.
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Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, added that investors will keenly observe the US Fed meeting minutes in the week. The markets are expected to consolidate in a broader range and take hint from overseas factors, he stated.