Indian stock market I saw a decline last week. The BSE Sensex slipped by 609.51 points, while the NSE Nifty had a decline of 166.65 points. In such a situation, the question is arising in the minds of investors whether this weakness of the market will continue in the new week starting on Monday or will the fast return? According to Siddharth Khemka, Head of Research in Motilal Oswal Financial Services, the market is likely to be strong further. According to him, the quarterly results and large economic figures of companies will support the market. This week, investors will be eyeing the GDP growth rate of India and the US.
Meanwhile, the Reserve Bank of India (RBI) on Friday announced a record dividend of Rs 2.69 lakh crore to the Central Government for FY 2024-25. This amount is 27.4% higher than the previous year. This dividend will help the government deal with challenges such as the increase in defense spending due to fees in the US and increasing tension with Pakistan.
Monsoon progress will be seen
Ajit Mishra, Senior Vice President (Research), Railways Broking Limited, said that due to global and domestic factors, the stock market moved last week. In the US, FPI investors intensified capital withdrawal due to concerns about the increase in bond yields and increasing debt burden, keeping pressure on the emerging markets including India. This week, investors will keep an eye on industrial production and manufacturing figures of India in India coming on May 28. Also, GDP growth rate data will also be released, which will indicate the speed of economic reform. Mishra said that the progress of monsoon will also play an important role in deciding the direction of the market. Factors such as the Activities of the US bond market, the details of the Federal Open Market Committee (FOMC) meeting and the Indo-US trade negotiations globally will also affect investors. Additionally, the disposal of the derivative contracts of May and the fourth quarter results of companies will have an impact on the market. This week, the quarterly results of major companies like Bajaj Auto, Arvindo Pharma and IRCTC are coming.
Record dividend will strengthen market notion
Experts believe that this week, the direction of the stock market will be mainly decided by the Reserve Bank of India (RBI) on the dividend of Rs 2.69 lakh crore given to the government and impact on its fiscal policies. The first response of the market participants will be focused on this news. According to Lemon Market Desk analyst Gaurav Garg, “In view of the ongoing uncertainty on American economy, foreign investment flows and business talks, there may be a round of integration in the Indian market in the near future.” Another analyst said that the market remained unstable last week due to rising levels of US debt and concerns about its fiscal health.
Vinod Nair, the research head of Jijit Financial Services, said, “Now investors are focused on US-India trade talks and strong large economic indicators at the domestic level. However, an increase in American bond yields and recent selling of FIIs can affect market notion.”
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