The Indian stock market on Friday closed higher for the day and for the week on positive global cues, but lower-than-normal volumes suggested lower participation by FPIs, who have been frequent sellers in the Indian markets. According to stock market experts, US GDP shrank in the first quarter and is expected to be near zero by the second half of the year, indicating signs of an economic crisis. Recently released data from Japan, Britain, the Eurozone and the United States showed that factory activities remained muted in June across all regions.
Giving his thoughts on the market wrap last week, Rahul Shah, Co-Head of Research at Equitymaster said, stock market this week Seems like a relief rally rather than a full recovery. Global macros remain challenging and may continue to act as pressure on Indian stocks as well. However, with valuations falling below their highs, the risk reward certainly looks better for Indian stocks from a 2- to 3-year perspective. As long as one is not paying a very high premium for quality and stability, this is a good time to start accumulating fundamentally strong stocks.”
Here we are listing down the top 5 triggers that can affect the stock market next week:
1]G7 Summit 2022: “The G7 Summit 2022 is scheduled from 26 to 28 June 2022 and further escalation of geopolitical tensions regarding the Russia-Ukraine war and Sino-Vietnam relationship could lead to a sharp recovery in global equity markets. Hence, stock market investors We are advised to keep an eye on the G7 Summit next week,” said Anuj Gupta, Vice President – Research, IIFL Securities.
2]Dollar Index: “Next week, a lot of triggers will determine the trend of gold prices. The first key variable will be the movement of dollar index as it will decide the movement of FIIs in Indian markets. Dollar index rebounded strongly last week after some easing and IIFL “A further rise in the dollar index could lead to a sharp sell-off by FIIs,” said Anuj Gupta of Securities.
3]OPEC+ meeting: “Any unexpected significant oil production boost will help reduce oil prices and inflation. Nevertheless, OPEC and its members are following through on their initial plan to add 432,000 barrels per day to the market, and oil prices will surge. There has been no surprise announcement by OPEC in spite of the triple digits,” said Sriram Ramadoss, Vice President of Green Portfolio – SEBI registered portfolio management service provider.
4]US GDP Q1 Data: This is an important trigger that market observers and investors need to be cautious about next week. If the figures are disappointing, speculations of a slowdown in the US economy will be further strengthened, leading to a sharp sell-off in global markets, including Dalal Street.
5]UK Retail Sales: “With UK inflation reaching a 40-year high of 9.1%, consumer spending and budgeting have taken a toll. Considering 25% of the FTSE 100 – the UK stock market index – includes consumer staples and consumer discretionary Companies are involved, this retail print will be crucial,” said Sriram Ramdas of Green Portfolio.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.