News

Published: June 17, 2024
Updated: June 17, 2024

Global Trends to Influence Markets in Holiday-Shortened Week

Focus on Global Cues Amid Domestic Lull

With no significant domestic triggers expected, investors are set to focus on global trends and foreign investor activity in the upcoming holiday-shortened week. The equity markets will remain closed on Monday due to Bakri Id.

Key Influences on Market Movements

Market movements will be guided by global oil benchmark Brent crude prices and the rupee-dollar exchange rate. "This week is a truncated one with no major triggers expected. However, we anticipate sector-specific movements amid budget-related buzz. Key factors to watch will be the progress of monsoon and institutional flows," said Santosh Meena, Head of Research at Swastika Investmart Ltd.

Global Data and Market Trends

Ajit Mishra, SVP of Research at Religare Broking Ltd, noted that in the absence of major domestic events, participants would look to global markets, particularly the US, for cues. Additionally, data from China, the movement in the dollar index, and US bond yields will be crucial.

Market Performance Recap

Last week, the BSE benchmark index rose by 299.41 points or 0.39%, while the Nifty advanced by 175.45 points or 0.75%. The BSE Sensex hit an all-time high of 77,145.46 on June 13, and the Nifty reached a lifetime peak of 23,490.40 on June 14.

Outlook for the Week

According to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd, "Domestic markets would remain closed on Monday, while globally investors would keep an eye on the Bank of England's interest rate decision. We expect the market uptrend to continue this week, supported by positive macro trends, expectations of sustained government spending and policy continuity, healthy monsoon, and strong earnings."

The holiday-shortened week will see market participants closely monitoring global trends and foreign investor activities, with a particular focus on developments in the US and China. Positive macroeconomic indicators and expectations of sustained government policies are likely to support continued market growth.