Stock markets are gearing up for a crucial week ahead as the first month of the new financial year 2024-25 comes to a close. With the US Federal Reserve policy meeting outcome on the horizon and the beginning of May, which will set the tone for the upcoming high-stakes general elections 2024, investors are keeping a close eye on several key triggers.
Indian stock markets saw a rebound after two weeks of profit-taking, gaining over a per cent. The week started on a positive note with global cues boosting sentiment, but volatility crept in as uncertainties surrounding mixed earnings persisted. A sharp surge on Thursday provided some relief, but profit-taking in the final session capped the momentum. The broader market, however, saw strength with mid-cap and small-cap indices surging by around four per cent.
The week saw both Nifty 50 and Sensex settling at 22,419.90 and 73,730.10 levels respectively. While all key sectors participated in the recovery, realty, metal, and pharma sectors posted strong gains. However, Kotak Mahindra Bank witnessed a significant tumble of 10.27 per cent, its worst week in nearly four years, after being barred by the RBI from taking new digital clients and issuing credit cards.
Looking ahead, analysts expect volatility to continue as the focus shifts to ongoing quarterly results. Key triggers for the stock markets in the coming week include Q4 results from major companies such as Dabur, Federal Bank, Adani Enterprises, among others. Auto sales numbers for April will also be in focus, along with the US Federal Reserve’s interest rate decision on May 1, 2024.
Additionally, four new IPOs and four listings are set to hit the market, while FII activity, global cues, oil prices, and corporate actions will also influence market movement. Technical views suggest a cautious optimism with Nifty facing resistance at crucial levels and Bank Nifty potentially entering a consolidation phase.
As investors navigate through these market triggers, it is advised to seek refuge in bonds and gold amidst the ongoing volatility. The upcoming week is poised to be critical with a mix of domestic and global indicators shaping market dynamics. Stay tuned for more updates on the evolving market scenario.
