The Indian stock markets have shown a significant upward trend in recent weeks, fueled by strong macroeconomic fundamentals and foreign fund inflows. As the high-stakes Lok Sabha election results approach on June 4, 2024, investors are closely watching various factors such as election voter turnout, domestic and global macroeconomic data, foreign fund inflow, crude oil prices, and global cues. In the last week of May, both the Nifty 50 and Sensex achieved record highs, with the Nifty reaching the milestone of 23,000 zones and the Sensex closing at 75,410.3.
Analysts are optimistic about the market’s performance, attributing the positive tone to global market influences and strong buying in select heavyweights. The recent announcement of a record dividend payout of ₹2.11 lakh crore by the Reserve Bank of India for FY24 has further bolstered market sentiment. With expectations of the Nifty 50 moving towards the 23,150-23,400 range, analysts predict a gradual up-move in the market, albeit with some expected volatility.
In the coming week, key market triggers include the final batch of Q4FY24 results, updates on Lok Sabha elections, and upcoming IPOs and listings. Companies like Tata Steel, PTC India, Reliance Capital, Apollo Hospitals, among others, are set to release their financial results, providing insights into the overall market performance. Additionally, several IPOs and listings are scheduled in the mainboard and SME segment, contributing to the market buzz.
Foreign institutional investors (FIIs) have shifted their stance, with a net inflow of ₹1,165.54 crore recorded amid robust market sentiments. The recent bounce in market activity is attributed to the underperformance of the Hang Seng index and expectations surrounding the Lok Sabha election results. Meanwhile, foreign portfolio investors (FPIs) have remained cautious, offloading Indian equities worth ₹22,046 crore, with the total outflow reaching ₹17,848 crore.
Global cues, including the performance of major indices like Dow Jones and S&P 500, will play a crucial role in shaping market sentiment. Traders and analysts are closely monitoring economic data releases, interest rate decisions, and inflationary trends to anticipate market movements. The decline in crude oil prices and upcoming OPEC+ meeting on June 2 are also factors influencing market dynamics.
Overall, the market outlook remains positive, with a bullish sentiment prevailing. As investors gear up for the upcoming Lok Sabha election results and navigate through the final phase of Q4FY24 results, the Indian stock markets are poised for continued growth and resilience.
