Markets may witness a gradual rise ahead of the LS poll results: Analysts
The results of the ongoing general election will be announced on June 4 | Photo: Bloomberg
Stock markets may witness a gradual upward move this week with some volatility as both election and earnings seasons near their end, analysts said. They added that global trends and trading activities of foreign investors could be significant in dictating investor sentiment.
Benchmark indices, which witnessed a record rally last week, would also follow the global oil benchmark Brent crude and the rupee-dollar trend.
The monthly expiration of derivatives on Thursday could also fuel volatility in the markets.
“We have reached the final curtain of fourth quarter earnings season. Many companies, including names like Tata Steel, will announce their financial results this week. Positive gains from the last quarter could give the market strength to continue its bullish momentum.
“We are very close to the Lok Sabha election results and the election verdict will give a boost to FII flows,” said Pravesh Gour, senior technical analyst at Swastika Investmart Ltd.
The results of the ongoing general election will be announced on June 4.
On the global front, upcoming economic data from Japan and the US, along with the movement in the global currency market, will also be important factors to take into account, he added.
This week, the focus will continue to be on elections, global cues and the final phase of earnings season, said Ajit Mishra, SVP, Research, Religare Broking Ltd.
As for March quarter results, LIC, NMDC, IRCTC and MMTC will announce their earnings this week.
“Overall, we expect the market to see a gradual rebound and some volatility this week as both election and earnings seasons approach their end,” said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd.
Based on domestic macroeconomic data, the GDP growth figure for the June quarter will be released on Friday.
Last week, the benchmark BSE rose 1,404.45 points or 1.89 percent, while the NSE Nifty rose 455.1 points or 2 percent.
The 30-share BSE Sensex hit its all-time intra-day high of 75,636.50 on Friday. The NSE Nifty crossed the 23,000 mark for the first time that day. During the day, the benchmark reached its lifetime peak of 23,026.40.
“The domestic market is hitting new highs with largecaps playing second fiddle to the broader market rally, indicating continued momentum in the near term,” said Vinod Nair, head of research at Geojit Financial Services.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)
First print: May 26, 2024 | 10:12 am IST