Global Market Outlook: Key Factors to Watch This Week
This week, keep your eyes on global factors and FII activity to steer the domestic equity markets, according to analysts. The stock markets made a strong come back on Friday, with the Sensex and Nifty posting their best gains in over five months.
The outcomes of the Maharashtra and Jharkhand assembly polls could shape Monday’s stock market performance. A solid victory for NDA in Maharashtra is expected to fuel bullish sentiments. However, global issues such as tensions between Russia and Ukraine and rising crude oil prices continue to pose risks.
The surge in FII outflows, driven by a strong US dollar index and high US bond yields, has been weighing on the rupee. Market stability may hinge on the direction of FII flows post the recent correction.
In Maharashtra, the BJP’s stellar show and INDIA’s win in Jharkhand are noteworthy political developments. Additionally, trends in Brent crude and the rupee-dollar relationship will impact stock trading. Global triggers like US economic data and the FOMC meeting minutes will also play crucial roles in shaping investor sentiment.
Amidst all this, a positive outlook for the Indian stock market, particularly in sectors linked to infrastructure development and political stability, is expected. Macroeconomic indicators, GDP, and infrastructure output will be closely monitored. It’s key to watch the ongoing FII fund flows, given their recent selling spree.
Last week saw significant gains in the stock market, with most sectors contributing to the rebound. Realty, auto, and FMCG sectors led the pack, while IT and banking helped cap losses and drive the benchmark’s recovery. Broader indices also saw an uptick, with gains in the range of 0.9% to 1.8%.
As we kick off the week, all eyes will be on the Maharashtra and Jharkhand assembly elections outcomes, along with global triggers like progress in the Russia-Ukraine conflict. Stay tuned for more market updates!
