The Indian stock markets experienced a rebound by the end of last week after a period of caution due to the Hindenburg-Adani row and poor factory output data that led to a consolidation phase for the indices. Investors are now looking ahead to the upcoming week with a keen eye on various domestic and global macroeconomic factors that could influence market movements.
At the start of the week, the domestic equity benchmarks Sensex and Nifty 50 faced volatility, influenced by mixed signals and pressure on select heavyweight stocks. However, as the week progressed, the market sentiment turned negative due to concerns raised by the Hindenburg report, high valuations, and disappointing earnings. Despite this, a sharp recovery in the previous session shifted momentum back in favor of the bulls, allowing the benchmark indices to close near the week’s highs. Friday’s rally reversed all the week’s losses, with both the Nifty and Sensex closing with gains of around one per cent.
The Nifty 50 advanced 0.71 per cent, while the Sensex gained 0.91 per cent, closing at 24,541.15 and 80,436.84, respectively. The IT sector saw significant gains, followed by realty and auto, while energy and metal sectors ended in the red. The midcap index gained nearly a per cent, and the smallcap index finished almost flat. The IT index outperformed by five per cent during the week in anticipation of a loose monetary policy from the US Fed.
Looking ahead, experts advise investors to remain cautious in the short to medium term and focus on value stocks in sectors like FMCG, IT, pharma, and telecom. The primary markets will remain active with new IPOs and listings scheduled across various segments. The sentiment in the domestic market remains positive, with expectations of the Nifty 50 reclaiming the 25,000-mark powered by bullish momentum. Traders are advised to remain stock selective and consider ‚buying on dips‘ strategy.
Key triggers for the stock markets in the coming week include upcoming macroeconomic data, new IPOs and listings, FII activity, global cues, oil prices, corporate actions, and technical views. Market participants will closely monitor institutional flows, economic data releases, and global market movements for cues on market direction. The technical outlook suggests a bullish sentiment with the Nifty 50 breaking out of its consolidation phase and reclaiming key support levels.
In conclusion, the Indian stock markets are poised for further upward momentum in the coming week, driven by positive sentiment and favorable macroeconomic factors. Investors are advised to stay informed, remain cautious, and focus on stock selection strategies to navigate the dynamic market environment.