The Global factors and activities by Foreign Institutional Investors (FII), will set the trend for domestic equity markets for the week, according to the analyst. However, results of Maharashtra and Jharkhand polls may have sentimental impact on stocks on Monday. The stock market witnessed a significant recovery on Friday with Nifty and Sensex touching the best single-day gains in five months and a relief after a correction week.
“On the domestic front, the outcomes of the Maharashtra and Jharkhand elections will be crucial triggers. Especially Maharashtra where NDA witnessed a one-sided victory which is likely to boost bullish sentiment further. However, global factors continue to pose significant risks. Escalating tensions between Russia and Ukraine, alongside rising crude oil prices, have added to inflationary concerns,” Santosh Meena, Head of Research, Swastika Investmart Ltd, said.
A strong US dollar index and high US bond yields are weighing on the rupee, leading to record foreign institutional investor (FII) outflows.
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In assembly election results of Maharashtra and Jharkhand on Saturday, BJP won with a record number of seats to propel the party-led ruling Mahayuti alliance to a landslide victory while the INDIA bloc stormed back to power in Jharkhand on the back of a spectacular showing by the JMM.
Some other factors including Brent crude and the rupee-dollar trend would also influence the stock markets trading session. The international events such as US economic data including GDP growth rate, and Federal Open Market Committee (FOMC) meeting minutes could also shape the trend.
“Overall, the political outcomes, particularly in Maharashtra, suggest a positive outlook for the Indian stock market, especially in sectors that benefit from infrastructure development and political stability,” Palka Arora Chopra, Director, Master Capital Services Ltd, said.
While the sell-off continues,
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