Stock market this week: The Indian secondary market started FY13 on a strong note, owing to easing geopolitical tensions, falling crude oil prices and standing with DIIs as net buyers. Positive sentiments move north on Dalal Street after India’s March GST collection climbs to an all-time high 1.42 lakh crores.
According to stock market experts, the next week will be important for the Indian secondary market. RBI Monetary Policy expected to come. He added that apart from RBI credit policy, there is a need to keep an eye on RBI-Ukraine news as it will continue to control global equity markets including Dalal Street.
Speaking on the triggers that propelled the Indian stock market last week; Santosh Meena, Head of Research, Swastika Investmart Ltd. said, “Indian equity markets started strongly in FY 2013 on the back of easing of crude oil prices, some positive news inflows on Russia-Ukraine front, some buyouts by FIIs, DIIs , and a pick-up in industrial activity. Global markets are stable, although there is still no clarity on the geopolitical situation, while there are concerns of both high inflation and slowdown as China battles COVID.”
Here we are listing the top 5 triggers that will affect the Indian stock market this week:
1]RBI Credit Policy: “This week, RBI’s monetary policy will be a key factor in the direction of Indian markets as it appears that RBI is behind the curve as most of the central banks have already hiked interest rates while RBI maintains status quo. It will be interesting to see how RBI manages the inflation and growth trade-off, where commentary will be important,” said Santosh Meena.
2]Russia-Ukraine News: Equity markets across the world are looking with new hope after the rift in Russia-Ukraine diplomatic ties. “As both Russia and Ukraine prepare for talks, the global community is expecting some positive results from these talks. However, nothing should be considered until there is some official announcement from both sides and hence both traders and investors. It is advised to keep an eye on the latest Russia-Ukraine news,” said Avinash Gorakshakar, Head of Research at Profitmart Securities
3]Behavior of FIIs: Asking street investors to monitor the behavior of FIIs in the first one to two trading sessions of this week, Avinash Gorakshakar said, “After remaining net sellers from October 2021 onwards, FIIs are finally looking towards DIIs as net buyers. However, this has happened only in the last week and hence one should not jump to any conclusions regarding FIIs. One needs to watch the trading pattern of FIIs in the first one to two sessions of this week.”
4]Start of the season results: The month of April comes with the result season. This month, the result season is starting from April 11 as IT giants like TCS, Wipro, Infosys, HCL Tech etc. are going to announce their quarterly figures from April 11.
Avinash Gorakshakar said, “We are expecting sharp volatility in IT stocks this week as the market is expecting Q4 numbers from IT companies.”
5]New covid cases in China: However, there is a need to keep an eye on the fresh cases of Kovid coming out in China. On Saturday, it has reported the highest number of new Covid cases since February 2020. Any further increase in new COVID cases in China could spoil the positive sentiments in global equity markets. Therefore, road observers and investors need to keep an eye on the new COVID cases emerging in China.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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