RBI monetary policy to Russia-Ukraine news: Top 5 triggers for market this week
3 min read . Updated: 04 Apr 2022, 06:14 AM IST
Premium- Stock market this week: RBI monetary policy will be a critical factor in the direction of Indian markets this week
Stock market this week: On account of easing geopolitical tension, slump in crude oil prices and FIIs standing with DIIs as net buyers, Indian secondary market started FY23 on a strong note. Positive sentiments at Dalal Street went further northward after India's March GST collection climbed to all-time high of ₹1.42 lakh crore.
According to stock market experts, next week will be crucial for the Indian secondary markets as RBI monetary policy is expected to come. They said that apart from RBI credit policy, one needs to keep an eye on RBI-Ukraine news as it will continue to dictate global equity markets including Dalal Street.
Speaking on the triggers that fueled Indian stock market last week; Santosh Meena, Head of Research, Swastika Investmart Ltd said, "Indian equity markets kick off FY23 on a strong note thanks to easing crude oil prices, some positive news flows on the Russia-Ukraine front, some buying by FIIs, continuous support by DIIs, and a pick up in industrial activities. Global markets are stable however there is still no clarity about the geopolitical situation while there are worries of both high inflation and slowdown as China is struggling with Covid."
Here we list out top 5 triggers that will dictate Indian stock market this week:
1] RBI credit policy: “This week, the RBI monetary policy will be a critical factor in the direction of Indian markets because it seems that RBI is behind the curve as most of the central banks have already hiked interest rates while RBI is maintaining the status quo. It will be interesting to see how RBI will manage inflation and growth trade-off where commentary will be crucial," said Santosh Meena.
2] Russia-Ukraine news: After breaking of ice in Russia-Ukraine diplomatic relations, equity market across globe is looking with a new hope. "As both Russia and Ukraine are ready for talks, global community is expecting some positive outcome from these talks. However, nothing should be presumed until there is some official announcement from both the sides and hence both traders and investors are advised to keep an eye on the latest Russia-Ukraine news," said Avinash Gorakshkar, Head of Research at Profitmart Securities
3] FIIs behaviour: Asking street investors to keep an eye on how FIIs behave in first one to two trade sessions this week, Avinash Gorakshkar said, "After remaining net sellers since October 2021, FIIs are finally looking on the DIIs side as net buyers. However, this has happened in the last week only and hence one should not jump at any conclusion in regard to FIIs. One needs to keep an eye on the FIIs trade pattern in first one to two sessions this week."
4] Beginning of result season: April month arrives with result season as well. This month, result season is beginning from 11th April as IT giants like TCS, Wipro, Infosys, HCL Tech etc. are going to announce its quarterly numbers from April 11 onward.
"We are expecting sharp movement in IT stocks this week as market is expecting Q4 numbers from IT majors," said Avinash Gorakshkar.
5] New Covid cases in China: However, one needs to keep an eye on the fresh Covid cases getting reported in China. On Saturday it has reported highest new Covid cases since February 2020. Any further rise in new Covid cases in China may spoil the positive sentiments across global equity markets. So, there is need for street observers and investors to keep an eye on new Covid cases getting reported in China.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
