Indian stock markets closed the first month of the new financial year 2024-25 (FY25) on a volatile note, experiencing both record-high levels and unexpected crashes. Analysts are noting that despite the onset of the pre-election rally, volatility has returned to the market. As we head into the second week of May, investors will be closely watching the ongoing January-March quarter results for fiscal 2023-24 (Q4FY24), domestic and global macroeconomic data, crude oil prices, and global cues.
Last week, the stock market saw fluctuations throughout, ultimately ending nearly unchanged amid conflicting signals. While the overall sentiment was initially positive, fluctuations in global markets and declines in certain major stocks offset much of the gains. The Nifty 50 managed to reach a new record high of 22,794.70 before settling at 22,475.80. Financials, auto, and energy sectors saw gains, but broader indices closed with slight losses, taking a pause after recent gains.
The key benchmark indices maintained a flat trajectory throughout the week, marking the fourth consecutive week of little movement. The Sensex recorded a marginal uptick of 147.99 points or 0.20 per cent, reaching 73,878.15, while the Nifty 50 edged up by 55 points or 0.25 per cent to settle at 22,475.80.
Looking ahead, analysts expect volatility to continue over quarterly results despite the ongoing uptrend in markets. Nifty 50’s resistance is expected in the 22,750-22,900 zone in case of further upward movement. Experts advise traders to consider hedged positions and await clearer signals before making big moves.
In the coming week, the focus will be on the next batch of Q4 earnings reports, with major companies like Dr Reddy’s Laboratories, Hero MotoCorp, L&T, BPCL, SBI, Eicher Motors, and Tata Motors set to announce their results. Additionally, several IPOs and listings are slated across the mainboard and SME segment, adding to the buzz in the primary markets.
Overall, the market will be closely monitoring global cues, FII activity, oil prices, corporate actions, and technical views to gauge the direction of the stock markets in the coming week. Investors are advised to stay informed and consult with experts before making any investment decisions.
