Will Nifty make up for Friday’s loss? 6 factors to track this week
Nifty ended last week marginally higher as earnings, Fed meeting and election-related speculations kept investors busy.
While most sectors are contributing positively except for IT, banking performance is likely to heavily influence market sentiment, analysts say.
«The rising VIX is indicative of potential volatility. Market can turn highly volatile in the short-run. Fed’s decision indicates rate cuts much lower-than-expected earlier this year. Inflation has turned stubborn at lower levels. But the latest jobs data in the US indicates a slowing economy and, therefore, rate cuts may be necessitated. The wage increase falling below 4% also reflects a weakening labour market. From the stock market’s perspective this is good news,» said VK Vijayakumar of Geojit Financial Services.
Here are key factors that may influence market mood in the week:
1) Global markets
Global markets are currently in a good mood after strong earnings from tech stocks, with the Dow Jones up 1.14% and Nasdaq up 0.97% in the first week of May 2024. US 10-year bond yields and the dollar index are also cooling off, which gives strength to the market. Economic data releases from China and the US, along with movements in the global currency market, will also be factors to consider, said Pravesh Gour of Swastika Investmart.
2) FPI flows
In the two days of trading in May, FPIs have invested Rs 1156 crore in equity and sold Rs 1726 crore in debt.
«The market is at record highs. There has been a pre-election rally. It is not as strong as in
