News

Published: May 27, 2024
Updated: May 27, 2024

Gradual Market Uptrend Expected Amid Election Results and Earnings Season

Market Trends and Influences:

Equity markets are anticipated to experience a gradual up-move this week, accompanied by some volatility, as both the election and earnings season near their conclusions. Analysts suggest that global trends and foreign investor trading activities will significantly influence investor sentiment. Benchmark indices, which saw a record-breaking rally last week, will also be closely tracking global oil benchmarks, particularly Brent crude, and the rupee-dollar exchange rate.

Impact of Derivatives Expiry:

The monthly derivatives expiry scheduled for Thursday is expected to contribute to market volatility. Major companies, including Tata Steel, are set to release their financial results this week, which could positively impact market performance.

Election Results and FII Flows:

The upcoming Lok Sabha election results, scheduled to be announced on June 4, are predicted to significantly influence Foreign Institutional Investor (FII) flows. Analysts believe that a decisive election verdict could further bolster market confidence and liquidity.

Global Economic Data:

On the global front, upcoming economic data from Japan and the US, along with movements in the global currency market, will be critical factors for investors to monitor. Experts emphasized the importance of these global cues alongside the final phase of the earnings season.

Upcoming Earnings Announcements:

Several major companies, including LIC, NMDC, IRCTC, and MMTC, are set to announce their earnings this week. Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd, expects the market to experience a gradual up-move with some volatility as the earnings season concludes and election results loom.

Domestic Economic Data:

From a domestic perspective, the GDP growth rate for the June quarter will be announced on Friday. This data will provide crucial insights into the economic health and future prospects of the country, influencing market sentiment.

Recent Market Performance:

Last week, the BSE Sensex surged by 1,404.45 points (1.89%), and the NSE Nifty climbed by 455.1 points (2%). On Friday, the BSE Sensex reached an all-time intra-day high of 75,636.50, while the NSE Nifty breached the 23,000 mark for the first time, hitting a lifetime peak of 23,026.40.

Analysts' Outlook

Experts note that the domestic market is achieving new highs, with large caps supporting a broader market rally. This trend indicates sustained momentum in the short term.