The movement of the country’s stock markets during the week will be determined according to the situation on the Kovid-19 front, macroeconomic data, quarterly results of the companies and trends created globally. Analysts believe so. He believes that the state assembly election results will hardly have any impact on the market, but the developments in the Kovid-19 front during the week and the central and state government’s strategy to deal with this situation will affect the market’s move. .
The effect of election results will be seen
The impact of the West Bengal assembly election results will dominate the stock market in the coming week. Counting of Assembly elections held in the Union Territory of Puducherry and four states in the previous days was held on Sunday. Investors were most interested in the West Bengal election results in this. The ruling Bharatiya Janata Party at the center remained far away from a majority in West Bengal. Due to this, selling can be seen in the stock market this week. Earlier, the Sensex had slipped 948 points and the Nifty 264 on Friday, after various exit polls showed the possibility of the BJP falling behind in West Bengal.
Auto companies will be under pressure
Shares of auto maker companies had a mixed trend last week. Mahindra & Mahindra’s stock plunged 3.31 per cent and Maruti Suzuki’s slipped 3.22 per cent while Bajaj Auto gained 4.37 per cent. However, there may be pressure this week as vehicle sales have fallen in April. This can be seen on the stock of companies.
Small investors beware
Market experts say that in the environment that is present in the market, retail investors should focus more on investing for a long time than trading. The market may remain sluggish for some time but the trend may remain positive in the long term. In such a situation, investors should remain in the stock market despite the difficulties. However, it is best to choose a good company that has low risk and is expected to get returns in the long run.
Opinion of Geojit Financial Services
VK Vijaykumar, chief investment strategist, Geojit Financial Services, said, “The election results will hardly have any impact on the market.” The news of this can last in the market for a few hours, the biggest case will be the rising cases of Kovid-19 infection and what steps are taken by the Center and the States to overcome them. He said that if the rising cases of Kovid-19 are not controlled and another nationwide lockdown is effected then the market will be affected extensively.
Religare Broking Estimate
Ajit Mishra, vice-president (research), Religare Broking, said, “We are expecting that the market will be more volatile this week. First of all, the businessmen will give feedback on the results of Reliance Industries. These results were released after the business closed on Friday. The assembly election results of five states will also have some impact on the market. He said that on the economic front, the manufacturing sector PMI and service sector PMI will be released on May 3 and May 5 respectively. Along with this, the market will also keep an eye on the latest status, vaccination and global indications for “Kovid-19”.
Results of big companies will be monitored
Results of big companies like Kotak Mahindra Bank, Hero MotoCorp, Tata Steel, Dabur and HDFC will be announced during the week. Reliance Industries on Friday reported more than doubling of its profit during the March quarter. Its retail and telecom and petrochemicals business has improved, which has weakened the refining business. Apart from this, results of Adani Ports and Special Economic Zone, Adani Enterprises, CEAT and Adani Power will also be declared during the week.
Foreign investors withdraw Rs 9,659 crore
The six-month-long buying spree by foreign investors in Indian markets came to a halt in April. Foreign investors were net sellers in the month of April and withdrew Rs 9,659 crore from the Indian stock markets during the month. In view of the severe wave of Corona virus in India and its impact on the economy, foreign investors changed their stance. According to Hershad Chetanwala, co-founder of MyWealthgrowth.com, if the fear of the Kovid-19 crisis in foreign investors increases, the trend of foreign investors selling their shares could get a boost and the market may get a little more turbulent. According to the data held by the depository, last month, Foreign Portfolio Investors (FPIs) withdrew capital worth Rs 9,659 crore from the Indian equity market. Withdrawal of capital at this level for the first time since September 2020. A withdrawal of Rs 7,782 crore was made then.
