Stock Market Outlook This Week: The direction of the Indian stock market this week will be decided by the developments related to the ongoing conflict in West Asia and the prices of crude oil. Experts predicted that trends in global markets, attitude of foreign investors and movement of rupee-dollar will also affect investor sentiment.
expert opinion
Ajit Mishra, Senior Vice President (SVP), Research Department, Religare Broking Limited, said, “Amidst the current global uncertainties, the market may remain data sensitive this week. The West Asia conflict and fluctuations in crude oil prices will remain key external factors and will determine market trends in the near term.
He further said, “On the domestic front, investors will closely monitor HSBC’s PMI data for manufacturing, services and composites categories, which will give an early indication of business activity trends.”
Foreign investors distanced themselves from the market
Foreign investors have pulled out Rs 88,180 crore from Indian stocks so far this month due to rising tensions in West Asia, a weakening rupee and concerns over the impact of higher crude oil prices on India’s growth and corporate earnings.
Ponmudi R, chief executive officer (CEO), online trading firm Enrich Money, said, “Markets are expected to be highly volatile and event-dependent. The near-term direction will largely depend on developments in West Asia, especially the emerging situation around the Strait of Hormuz.
What will be the impact on crude oil prices?
Any prolonged disruption may cause crude oil prices to remain above the $100 level. This may increase the pressure of inflation and current account deficit and may maintain the perception of risk aversion.
He said that global cues including FII inflows, movement of rupee and strength of US dollar will be monitored. Any sign of reduction or easing of tensions could lead to a rise in crude oil prices, while an increase in tensions could put further pressure on the market.
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