New Delhi. There will be volatility in the Indian stock markets this week. The main reason for this is geopolitical concerns and the rise in interest rates in the US. Analysts say that for now the trading in the market will remain in a range. He says that this week the eyes of investors will be on the global trend, inflation data and quarterly results of companies. Now is the final round of quarterly results.
Apart from this, the volatility of the rupee, the trend of foreign institutional investors and the price of Brent crude will also decide the direction of the market. Santosh Meena, Head of Research, Swastika Investmart, says that markets around the world are trying to adjust amid the possibility of a steep hike in interest rates in the US. But concerns remain due to geopolitical tensions.
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Keep an eye on election results and inflation data
Meena says that on the domestic front, wholesale and retail inflation figures are to come this week. This is the final round of the companies’ quarterly results. These will affect the direction of the market. Activity can be seen in some specific stocks. Apart from this, investors will also keep an eye on the developments related to the Uttar Pradesh, Uttarakhand, Goa, Punjab and Manipur assembly elections. FII’s stance will also be important for the Indian markets, as they are currently making heavy withdrawals. However, on Friday, FIIs poured a net Rs 108.53 crore into Indian stocks. During this month, FIIs have pulled out a net Rs 14,930 crore from the Indian capital market.
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Federal Reserve’s decisions will also have an effect
Yesha Shah, Head of Equity Research at Samco Securities, said that after the reaction to the US inflation data, investors will now try to understand the action of the Federal Reserve. The details of the Federal Reserve meeting are about to be released. Apart from this, investors will also keep an eye on China’s inflation data. Dalal-Street investors will also keep an eye on the domestic inflation data. Overall, due to these developments, there is a possibility of volatility in the market.
Investors eye global markets
According to Ajit Mishra, Vice President Research, Religare Broking, after leaving behind key developments, now investors will be watching the quarterly results of global markets and companies. On the macro front, the market will react on the Industrial Production (IIP) data on Monday. At the same time, Vinod Nair, Head of Research, Geojit Financial Services, said that the direction of the market this week will be decided by the global trend and macroeconomic data on the domestic front.
Tags: inflation, Stock Markets
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