Stock market investors are gearing up for a busy week ahead as key corporate and macroeconomic data releases are set to influence market direction. After a positive start to the new financial year 2024-25, the second week of April 2024 brings in several important triggers that will keep investors on their toes.
The Indian stock market traded volatile in the first week of the new financial year but managed to end on a positive note. With domestic equity benchmarks Nifty 50 and Sensex extending their winning streak and logging a third straight week of gains, investors are cautiously optimistic about the market outlook.
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) decided to keep the interest rate unchanged for the seventh time at 6.5 per cent, aligning with market expectations. This decision, along with positive results from top private lender HDFC Bank, contributed to the financial services sector gaining 2.70 per cent this week.
Looking ahead, investors will be closely watching the upcoming corporate earnings for the quarter ending March 2024, starting with Tata Consultancy Services (TCS) announcing its Q4 results on April 12. Additionally, macroeconomic data such as India’s consumer price index (CPI) and the index of industrial production (IIP) will also be released this week.
Foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) activity will be monitored closely, especially in light of the recent swings in US bond yields and geopolitical tensions. Global cues, including the US inflation rate announcement and the European Central Bank’s interest rate decision, will also impact market sentiment.
Oil prices hit a six-month high due to ongoing geopolitical conflicts in the Middle-East, with Brent and US West Texas Intermediate (WTI) crude oil benchmarks reporting gains. Corporate actions, technical views, and upcoming IPOs and listings will also be key factors influencing market direction in the coming week.
Overall, analysts expect Nifty 50 to be in a consolidation phase with a prevailing bullish bias, advising traders to focus on stock selection and not get carried away with the recovery in broader indices. As investors brace for a week filled with important triggers, staying informed and cautious will be crucial in navigating the market landscape.
