Markets Ahead: Global Economic Data, Maharashtra And Jharkhand Election Results To Influence Investors

Experts pointed out that as the US dollar index grew stronger and US bond yields soared, it weighed down the rupee and resulted in record foreign institutional investor (FII) outflows

In the last trading session on Friday, the equity benchmarks Sensex and Nifty recorded a sharp recovery and clocked the best single-day gains in over 5 months.

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FII activity and global factors will impact trading sentiments in the domestic equity markets this week, analysts noted. The experts pointed out that the results of assembly elections in Maharashtra and Jharkhand could also have an impact on the stock market on Monday.

In the last trading session on Friday, the equity benchmarks Sensex and Nifty recorded a sharp recovery and clocked the best single-day gains in over 5 months. The BSE Sensex rallied ahead by 1,961.32 points or 2.54 per cent to close the session at 79,117.11, while the NSE Nifty50 climbed 557.35 points or 2.39 per cent to settle trading at 23,907.25.

Regarding factors that could impact the sentiment amongst investors, Santosh Meena, Head of Research, Swastika Investmart Ltd, noted, “On the domestic front, the outcomes of the Maharashtra and Jharkhand elections will be crucial triggers. Especially Maharashtra where NDA witnessed a one-sided victory which is likely to boost bullish sentiment further. However, global factors continue to pose significant risks. Escalating tensions between Russia and Ukraine, alongside rising crude oil prices, have added to inflationary concerns.”

Meena pointed out that as the US dollar index grew stronger and US bond yields soared, it weighed down the rupee and resulted in record foreign institutional investor (FII) outflows.

Palka Arora Chopra, Director, Master Capital Services Ltd, “Overall, the political outcomes, particularly in Maharashtra, suggest a positive outlook for the Indian stock market, especially in sectors that benefit from infrastructure development and political stability.”

Meena said that global triggers such as GDP growth rate, Federal Open Market Committee meeting minutes, and economic data from the US would play major role in influencing sentiments in the market.

Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd, stated, “On Monday, the market will react to the outcome of state assembly elections in Maharashtra and Jharkhand along with other global triggers including developments in the Russia-Ukraine war.”