GDP Growth Rate, General Election Results To Drive Markets This Week, Say Analysts

The key equity indices witnessed a record-high rally last week and are expected to clock the movements of the global oil benchmark, Brent crude, and the currency fluctuations in the week

Experts pointed out that some volatility is expected ahead as the election and earnings season are about to close soon

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Global market trends and foreign investors’ trading activity will impact investor sentiments in the week, analysts noted. The experts said that equity markets are projected to clock a gradual recovery this week, however, some volatility is expected as the election and earnings season are about to close soon.

The key equity indices witnessed a record-high rally last week and are expected to clock the movements of the global oil benchmark, Brent crude, and the currency fluctuations in the rupee and dollar in the week, reported PTI.

Commenting on the flow, Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, noted, “The monthly derivatives expiry on Thursday may also fuel volatility in markets. We have reached the final curtain for the Q4 earnings season. Many companies, including names like Tata Steel, will release their financial results this week. Positive earnings from the final quarter could provide strength to the market to continue its bullish momentum. We are very close to the Lok Sabha election results, and the election verdict will give a boost to FII flows.”

Gour added that the results of the general elections will be announced on June 4, 2024. Globally, investors will also observe the economic data from the US and Japan, scheduled for the week. 

Ajit Mishra, SVP - Research, Religare Broking Ltd, stated, “This week, attention will remain on elections, global cues, and the final phase of the earnings season.”

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd commented that LIC, NMDC, MMTC, and IRCTC are among the major earnings expected in the week. “Overall, we expect the market to witness a gradual up-move and see some volatility this week as both election and earnings season are nearing the end,” he noted. 

Notably, the BSE Sensex soared 1,404.45 points or 1.89 per cent last week, while the NSE Nifty50 rallied 455.1 points or 2 per cent. The Sensex reached an all-time intraday high of 75,636.50 in the last trading session on Friday, while Nifty crossed the 23,000 mark for the first time on the day. 

Vinod Nair, Head of Research, Geojit Financial Services, said, “The domestic market is reaching new highs, with largecaps playing second fiddle to the broader market rally, indicating sustained momentum in the short-term.” Domestically, markets will clock the GDP growth rate data for June scheduled to be announced in the latter half of the week.