The Indian stock market has fallen in five of the last six days as a result of negative global cues. Following a three-week winning streak, the Nifty 50 index fell 2.31 percent last week. Volumes on the NSE remained modest, as they had been over the previous three to four sessions.
On Friday, world stocks fell to a two-week low as fears about global growth were fueled by the European Central Bank’s rate hike forecast and jitters about incoming US inflation data.
Fitch Ratings has upgraded India’s outlook from negative to stable, while maintaining the BBB- rating.
“Despite near-term headwinds from the global commodity price shock, the Outlook revision reflects our view that risks to medium-term growth have lessened due to India’s strong economic recovery and lessening financial sector weaknesses,” Fitch said in a statement on June 10.
HDFC Securities’ Technical Research Analyst, Nagaraj Shetti, stated, “On the daily chart, a lengthy negative candle formed and dropped below the 16,200 level of support. Now, one by one, the supports are breaking down, and the market appears to have gained up downwards momentum on Friday.”
Traders and investors are encouraged to remain cautious about each and every trigger, according to stock market analysts, as the market has yet to reach its bottom, and volatility in the equities market may persist this week as well.
Here are the top 5 triggers that could influence the sharemarket this week:
1] Fourth Covid wave: In India, reports of fresh Covid 19 cases have been on the rise for the past several days. The amount of new Covid instances in India increased dramatically last week, reaching 36,267 on Friday 2022. If the number of new Covid cases in India increases dramatically, FIIs’ selling may accelerate, resulting in a significant sell-off on Dalal Street,” said Jitendra Upadhyay, Sr. Equity Research Associate at Bonanza Capital Management.
2] Inflation data from India: The global markets will be watching India’s inflation data, which will be released on Monday this week.
“In the global economy, there are concerns of stagflation. Inflation targeting has long been a top priority for central banks around the world.
Commodity prices, inflation data, and GDP growth estimates from major economies will be keenly monitored by equity and debt markets “Green Portfolio, a SEBI-registered portfolio management service provider, is led by Divam Sharma.
3] Federal Reserve meeting in the United States: “The markets and FPI activity will be affected by US wholesale inflation statistics and the Fed’s interest rate decision, which will include a speech by the Fed Chair. Interest rates are expected to rise 50 basis points in June, according to the markets “Green Portfolio’s Divam Sharma stated.
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