Stock market will react to the results of assembly elections, new direction will be decided

Mumbai: The stock market is closed today on Sunday, but before that the results of the assembly elections have come, hence the result remains on the stock market. It is being told that in the coming week, global trends and activities of foreign institutional investors (FIIs) will decide the direction of local stock markets. Analysts have expressed this opinion. Apart from this, the market will also react to the results of Maharashtra and Jharkhand assembly elections on Monday.

The stock market had surged on 22 November

Let us tell you that on Friday last week, there was a strong rise in Sensex and Nifty after several weeks of decline. That day, Sensex and Nifty recorded their highest single-day gains in five months. On Friday, the 30-share BSE Sensex rose 1,961.32 points or 2.54 per cent to 79,117.11. Whereas the Nifty of National Stock Exchange stood at the level of 23,907.25 points with a gain of 557.35 points or 2.39 percent.

Experts' statements on election results

Here the statements of analysts on the election results have also come to the fore. In this, Swastika Investmart Ltd. Santosh Meena, head of research, said, “On the domestic front, the results of Maharashtra and Jharkhand elections are important for the market direction. Especially Maharashtra where the National Democratic Alliance (NDA) has registered a unilateral victory. However, global factors will continue to pose risks to the market. Rising tensions between Russia and Ukraine and rising crude oil prices have increased concerns about inflation.

Meena said the rupee was under pressure due to the strengthening of the US dollar index and rise in US bond yields, leading to record withdrawals by foreign institutional investors (FIIs). He said that FII inflows will be important for the direction of the market.

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These factors will affect the market

The ruling Mahayuti alliance and the India alliance in Jharkhand have retained power in the Maharashtra elections. Analysts say that global crude oil prices and rupee-dollar fluctuations will also affect the market. Meena said that at the global level, US Gross Domestic Product (GDP) data and details of the Federal Open Market Committee (FOMC) meeting will also play an important role in guiding investor sentiment.

Election results positive for the market

Master Capital Services Ltd. Director Palka Arora Chopra said that the Maharashtra election results are overall positive for the Indian stock markets. This will especially benefit sectors related to infrastructure development. Religare Broking Ltd. Ajit Mishra, senior vice-president (research), said, “Macroeconomic indicators including GDP will be important for the market. “Market participants will keep an eye on FII inflows, especially given their selling in recent times.” Last week, the 30-share BSE Sensex rose 1,536.8 points or 1.98 percent. Whereas the National Stock Exchange's Nifty gained 374.55 points or 1.59 percent.

As per agency input-