There may be ups and downs in the business in the Indian stock market next week. The reason for this is the absence of concrete signals at the domestic level and investors will keep an eye on global activities including the outcome of the US Central Bank Federal Reserve meeting. Market analysts said that at this time the global trend is giving direction to the Indian stock market. He said that apart from this, traders will also keep an eye on Foreign Institutional Investors (FII) activities, fluctuations in the rupee rate and oil prices.
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Major benchmark indices Sensex and Nifty declined by nearly two per cent last week. However, the market declined despite gains in the last two trading sessions. The decline was mainly due to financial, IT, vehicle and bank stocks. There is a selloff in the stocks. Investors are adopting a cautious approach due to the possibility of increasing the US Banking Crisis. According to analysts, the crisis in banks in America is still in the center. Investors are worried about this. Apart from this, foreign institutional investors There is also concern over the continuation of capital withdrawal of FPIs.
Religare Broking Ltd. In the absence of any major domestic developments, Ajit Mishra, Vice President (Tech Research) said, “Investors will now focus on the Federal Open Market Committee (FOMC) meeting to be held on March 21-22.” Apart from this, the trend of fluctuations in the price of crude oil and capital inflow of foreign funds will also give direction to the market.
Stock market traders expect that the US Federal Open Market Committee may increase the policy rate by a relatively small 0.25 per cent or maintain it at the current level. The reason for this is that the inflation rate in the US came down to 6 percent in February, which was 6.4 percent a month ago. Along with this, the US economy is grappling with the banking crisis.
Vinod Nair, head of research at Geojit Financial Services, said, “Low inflation in the US has given rise to confidence that the Federal Reserve will not raise the policy rate aggressively and may even maintain the status quo in the March meeting.” He said. With the increase in the European Central Bank’s policy rate by 0.50 percent, all eyes are now on the US Federal Reserve and the Bank of England. Next week, both the central banks will hold a meeting regarding the policy rate.
Swastika Investmart Ltd. Senior technical analyst Pravesh Gaur said that the crisis in Silicon Valley Bank in the US and Signature Bank in New York has shaken investor confidence. He said that due to continuous negative signals in global markets, investors are investing money in investment products considered safe like dollar and gold. At the same time, FIIs are withdrawing investment from the domestic market in view of the fall in the domestic rupee exchange rate.
According to stock market data, foreign institutional investors were net sellers on Friday and sold shares worth Rs 1,766.53 crore. On the other hand, domestic institutional investors remained net buyers. He bought shares worth Rs 1,817.14 crore.