Investors are gearing up for an eventful week in the fourth week of May as they closely monitor a range of factors that could impact the stock market. From the ongoing January-March quarter results for fiscal 2023-24 to voter turnout, domestic and global macroeconomic data, foreign fund outflows, crude oil prices, and global cues, there is no shortage of key triggers to watch out for.
Domestic equity benchmarks have been on a steady rise, with Nifty 50 reclaiming the 22,500 level and the Sensex closing above 74,000. The market saw a positive trend with the BSE benchmark climbing 1.84 per cent and the Nifty going up by two per cent. Nifty Midcap hit an all-time high, while Nifty Realty and Nifty Metal also saw significant gains.
Despite initial volatility due to concerns over low voter turnout in the ongoing general elections, market sentiment improved following comments from key government officials. Investors are expressing optimism about potential interest rate cuts in 2024, supported by favorable US consumer inflation data and improved jobless claims figures.
In the coming week, investors will be keeping a close eye on the last major batch of Q4 earnings reports, with companies like Zee Media, Sun TV Network, NTPC, and ITC set to report. US Federal Reserve Chairman Jerome Powell’s speech on Monday is also expected to influence market sentiments.
Foreign institutional investors (FIIs) have been on a selling spree, with outflows from Indian equities totaling ₹10,649.92 crore. The main trigger for the selling has been the outperformance of the Hang Seng index in Hong Kong, prompting FIIs to move money from expensive markets like India to cheaper markets.
Global markets are currently in a buoyant mood, driven by positive cues such as cooling US inflation and strong earnings from tech stocks. The outlook for the market will be guided by major global economic data, including UK inflation data, US initial jobless claims, and China loan prime rate.
Oil prices have also seen a rebound, with Brent settling nearly one per cent higher and recording its first weekly gain in three weeks. The International Energy Agency (IEA) has trimmed its global oil demand forecast for 2024, widening the gap with OPEC.
Overall, analysts expect continued volatility in the market in the near term, with opportunities for profit booking and a “buy on dips” strategy advised for traders. It will be a critical week for investors, with new IPOs, listings, and corporate actions set to drive market movements.
