Indian investors are gearing up for a celebratory week as the stock market is set to open on Monday, June 3 with exit polls indicating over 350 seats for the NDA coalition. The positive news comes after a volatile week filled with political uncertainty.
The market will also react to domestic GDP data and US core PCE data, which is expected to heighten volatility on Monday. Global cues have been weak, with hopes of a rate cut diminishing due to better than expected US economic data releases.
Analysts anticipate the Nifty 50 to ascend towards the range of 23,000-23,400, with the index potentially holding around 22,400 on the downside. Traders are advised to monitor leveraged positions closely and await further clarity amidst fluctuations expected this week due to the RBI monetary policy.
Experts predict a big rally in the market on Monday, with largecaps in financials, capital goods, automobiles, and telecom likely to lead the charge. The bulls are expected to be emboldened by the better-than-expected 8.2% growth in GDP numbers released after market hours on Friday.
Investors can expect a 3-5% return from the market on Monday, according to Gary Dugan, chief investment officer at Dalma Capital Management Ltd. in Dubai. Technically, the market is poised for a rally, with high volatility and a possible upside towards 22800-23000 levels in the coming days.
After the election results, the focus will shift towards the next Full Union Budget, which will set the growth trajectory for India for the next 5 years and elevate corporate earnings. The next 100 days of the newly formed government will be crucial, with a potential market capitalization doubling to $10 trillion in the next 4-5 years.
Overall, Indian investors are optimistic about the market outlook post-election results, with hopes for continued economic growth and positive policy reforms under the new government.
