Business Business : In the absence of any major domestic developments, the direction of the stock markets this week will be decided by global events and the activities of foreign investors. This opinion was expressed by experts. They said that there may be some volatility in the market this week due to the settlement of monthly derivative contracts. Last week, the local stock markets recorded a record gain after the US Federal Reserve cut interest rates by 0.50 percent. Santosh Meena, Head of Research, Swastika Investmart Ltd, said that the previous rate cuts in the US have had a positive impact on the emerging markets and India has emerged as a favorite destination for global investors.
He said that foreign institutional investors (FIIs) made aggressive purchases during the week. On Friday alone, FIIs invested more than Rs 14,000 crore in the Indian stock markets. He said, “There is no major indicator to tell the direction of the market this week. However, US macroeconomic data will remain important for the market. FII flows will remain a key driver for the Indian equity market, while domestic institutional flows will also be closely monitored.
“Though the market appears to be unaffected by geopolitical risks at present, it could pose a serious threat to the market in the future,” Meena said. The BSE Sensex closed at a record high of 84,544.31, up 1,359.51 points, or 1.63 per cent. On the day, it rose 1,509.66 points, or 1.81 per cent, to hit an all-time high of 84,694.46.
Similarly, the National Stock Exchange's Nifty index rose 375.15 points or 1.48 per cent to close at a record high of 25,790.95 points on the same day. During the day, the Nifty gained 433.45 points or 1.70 per cent to reach a record high of 25,849.25. Last week, the Sensex rose 1,653.37 points or 1.99 per cent. The Nifty rose 434.45 points or 1.71 per cent.
“The market is gradually gaining momentum,” said Siddhartha Khemka, Head of Research (Wealth Management), Motilal Oswal Financial Services. “We expect the positive momentum to continue this week, supported by strong foreign investment inflows, healthy domestic macroeconomic factors and easing concerns about a slowing US economy.”
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