Investors awaiting major triggers from global markets

Under the shadow of ongoing general elections 2024 in phased manner, US inflation concerns, geopolitical tensions and selling by Foreign Institutional Investors (FIIs); the heightened volatility continued to impact the domestic markets during the week ended April 26. BSE Sensex gained 641.83 points or 0.87 percent to end at 73,730.16 points, while Nifty finished at 22,420 points, rising 273 points or 1.23 per cent. The broader indices outperformed the benchmark indices with BSE Small-cap and Mid-cap surging four per cent each. Nifty Midcap 100 index gained four per cent to touch fresh all-time high of 50,684.50 points. FIIs sold equities worth Rs14,703.72 crore, while DIIs bought equities worth Rs20,796.16 crore. However, for the month till date, FIIs sold equities worth Rs36,933.21 crore and DIIs purchased equities worth Rs42,065.12 crore. During the week, the market remained volatile with positive bias amid mixed cues including geopolitical de-escalation, falling crude oil prices, mixed 4QFY24 earnings, weaker-than-forecasted GDP growth, higher inflation and rising US bond yield.

Global traders feel that an expanding conflict between Iran and Israel would disrupt global crude supplies, pushing up commodity prices and energy stocks. However, the war fears that jolted oil markets recently have been easing off. Next week, many traders will look to a US Fed meeting which could provide hints about the potential for rate cuts this year. Futures markets are pricing in a 19 per cent chance the central bank will hold rates steady for the rest of the year. Investors say the market’s crosscurrents, a strong economy, but higher-for-longer interest rates, mean additional volatility could be on the way. Coming week would see results from a clutch of Adani Group companies, Dabur India, Britannia Industries, Titan, Tata Technologies, Avenue Supermarts, Kotak Mahindra Bank, Tata Chemicals, Trent and UltraTech Cement.

The markets will also react to earnings declared by ICICI Bank, Yes Bank, RBL Bank, IDFC First Bank and others over the weekend. In the holiday truncated week, monthly auto sales numbers and low voter turnout in the second phase is also likely to play on the market sentiments. Equity markets will be shut for trading on May 1, Wednesday on account of Maharashtra Day.