Stock Market Triggers to Watch Out for in the Second Week of March
As we head into the second week of March, market participants and investors are keeping a close eye on several key triggers that could impact the stock market. From crucial economic data releases to electoral announcements ahead of General Elections 2024, foreign capital inflow, and global cues, there is a lot to watch out for in the coming days.
The domestic equity benchmarks have been on a winning streak, hitting new all-time highs in the previous session. The Sensex and Nifty 50 have both gained about three percent each in the last four weeks, marking the best streak in three months. While most sectors traded in the green, with banks, metals, and energy leading the gains, sectors like media, IT, and healthcare ended the week in the red.
According to experts, regulatory concerns and profit booking in the midcap and smallcap space, as well as recent actions on certain NBFCs and city gas distributors, dampened investor sentiment last week. Small-caps saw a decline of 2.18 percent, while mid-caps added 0.36 percent, underperforming the blue-chip indexes.
The upcoming week will see the release of important macroeconomic data, including India’s CPI-based inflation rate for February, IIP data for January, and WPI-based inflation. Additionally, several new IPOs and listings are scheduled across the mainboard and SME segments, keeping the primary markets buzzing.
Foreign institutional investors (FIIs) have shown renewed interest in Indian markets, with continuous inflows by domestic institutional investors (DIIs) as well. FPIs have pumped significant amounts into Indian equities and debt markets, driven by factors such as strong corporate earnings, robust macroeconomic numbers, and better-than-expected economic growth.
Global cues, including inflation data releases from the US, Japan, and the UK, as well as the outcome of the ECB interest rate meeting and US Non-Farm Payroll, will also influence market direction. Oil prices, corporate actions, and technical indicators all point towards continued bullish momentum for the Nifty, with experts advising a stock-specific trading approach.
Overall, analysts expect markets to sustain their trend with rotational buying, with the Nifty 50 inching towards the 22,750-22,800 zone. While volatility may persist due to high valuations and policy rate guidance releases, traders are advised to stay informed and make investment decisions carefully.
