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Stock market next week: Global equity markets including stock market of India has been under selloff heat after the US inflation year-on year surged highest in last four decades. Post-RBI Policy on Thursday, it seemed that the secondary markets were geared for a resumption of the positive momentum as NSE Nifty and Bank Nifty index reacted positively. However, as the event was over, focus shifted back to global cues, which saw a sell-off in equities due to the rising US Bond yields.

According to stock market experts, global inflation may continue to affect the equity markets globally but there are certain triggers, which they can't afford to miss out. They listed out below-mentioned 5 major triggers for stock market next week:

1] LIC IPO DRHP: Advising stock market investors to keep an eye on developments related to LIC IPO as the Life Insurance Corporation of India is expected to file its Draft Red herring Prospectus (DRHP); Avinash Gorakshkar, Head of Research at Profitmart Securities said that filing of DRHP will make it clear about the LIC IPO size and other details. In that case, FIIs and DIIs are expected to fish out their money from the secondary markets in a calibrated manner and keep it safe for the LIC IPO. In that case, liquidity in Indian stock market may get squeezed for some time and secondary market may trade sideways for some time. He said that anchor investors money will have a lock-in period of one month post-LIC IPO listing date, so, the liquidity may remain squeezed till this period.

2] Russia Ukraine conflict: Avinash Gorakshkar of Profitmart Securities said that Russia has announced to attack Ukraine next week and Russia's one rocket launch on Ukraine will be enough for global markets tumble including stock market of India. He said that the geopolitical tension may impact the global economy as entire European economy would get affected by single negative Russia Ukraine news.

3] Global inflation: Suggesting secondary market players and investors to keep an eye on how global inflation pangs out next week, Anuj Gupta, Vice President at IIFL Securities said that US inflation rate has logged steep rise in year-on-year, which is highest in last 40 years and it is expected to affect the global inflation as well. Now, in case of escalation in Russia Ukraine conflict, crude oil is expected to shot up sharply and may hit $100 per barrel in international markets. This will lead to sharp escalation in global inflation leading to negative impact on the equity markets as we witness in last 3 sessions last week.

4] Deviation of rupee vs dollar: Anuj Gupta of IIFL Securities said that Indian National Rupee (INR) hit one week low on yesterday when it touched 75.58 levels. Further it may test 75.80 to 76 levels soon. So, in case of further depreciation in Indian Rupee, FIIs and FPIs may further fish out money from the Indian equity markets.

5] Company results: Expecting stock market earnings next week to work as one of the major triggers in stock market next week, Avinash Gorakshkar said that a big number of listed companies are expected to announce its third quarter results. In that case, some stock specific trade can be expected in big ticket size listed companies and hence traders are advised to keep an eye on their favourite stocks and its upcoming results next week.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

ABOUT THE AUTHOR

Asit Manohar

Chief Content Producer at Live Mint Digital Team
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