STOCK MARKET PREDICTION: Iran peace talks and US Fed’s decisions will decide the stock market’s movement, keep an eye on these factors

Mumbai: After the spectacular recovery seen in the domestic stock market last week, investors are now eyeing major developments on the global and domestic front in the coming days. A tremendous rise was recorded in the market last Friday due to positive expectations of peace talks between America and Iran. Experts believe that the progress of this peace talks will prove to be the most important trigger for the market in the coming week also.

Along with this, the movement of monsoon at the domestic level, retail and wholesale inflation data, and data related to import and export will also decide the direction of the market. While retail inflation figures have come on Friday, wholesale inflation (WPI) numbers will be presented on Monday. Globally, the US Federal Reserve meeting to be held on June 16 and 17 and the subsequent statement will have a deep impact on the sentiments of the Indian stock market.

Sensex and Nifty rise

In the last trading week, the market closed with gains on three out of five days. Strong buying on Friday pushed the indices up by about 2%.

Sensex: On a weekly basis, it closed at 75,527.95 with a gain of 1,284.61 points (1.73%).
Nifty-50: rose 256.20 points (1.10%) to reach 23,622.90.

However, midcap and smallcap indices remained sluggish and witnessed marginal gains of 0.39% and 0.48% respectively.

Banking sector shines, IT shares fall heavily

Last week, the market’s rise was supported by banking and financial sector shares, while the pressure on IT companies was clearly visible.

Main profit making stocks: Kotak Mahindra Bank (6.85%) was the biggest gainer in Sensex. Apart from this, shares of Axis Bank (6.47%), ICICI Bank (6.19%), Indigo (5.14%), SBI (4.00%), HDFC Bank (3.35%) and Bajaj Finance (3.32%) also gained well. Maruti, L&T, Asian Paints and HUL also managed to gain.

Main stocks that suffered losses: Shares of IT giant Infosys fell the most by 6.73%. Along with this, shares of Eternal (4.93%), Tata Steel (4.33%), HCL Tech (3.92%), Tech Mahindra (3.59%), NTPC (2.13%) and TCS (1.67%) also declined. Shares like Bajaj Finserv and Adani Ports also closed in the red.