The kind of fall seen in the stock market after last week’s budget was recovered in a single day on Friday. The main reasons were the US GDP numbers, expectations of improved global demand and domestic investor confidence in the market. Now the expectations are on from next week. The rise seen in the stock market on Friday has raised hopes among investors and experts. Experts believe that the kind of momentum seen growing in the stock market, Nifty will cross the 25,000 mark next week.
Vinod Nair of Geojit Financial Services said in a press release that many factors will decide the direction of the domestic market next week. Which also includes global economic updates including quarterly earnings data, monetary policies from the US Federal Reserve and BOE, US employment data and Eurozone GDP data. However, experts say investors will also keep an eye on global market trends and crude oil price fluctuations for more indicators.
Will be keeping an eye on quarterly results.
This week, GAIL, Adani Power, Bank of Baroda, BHEL, Coal India, Mahindra & Mahindra, Maruti, Tata Steel, Adani Enterprises and Tata Motors will announce their quarterly results. The effect of this is also visible in the stock market. The state and direction of the stock market will depend a lot on how the quarterly results of the companies come in?
PMI data
On the other hand, on August 1st of the week, the manufacturing PMI data will also be available in front of the stock market. Its effect can also be seen in the market. Apart from this, the manufacturing PMI figures from China will be seen. The PMI figures from China were looking quite good for some time now.
Confidence of foreign investors
As of July 26, FPI investment in equity stood at Rs 33,688 crore. Chief Investment Strategist Dr VK Vijayakumar told the media report that FPI investment in debt during the same period was Rs 19,222 crore. So far this year, FPI investment in equity is Rs 36,888 crore and investment in debt is Rs 87,846 crore. Since India is one of the best performing markets in the world, FIIs cannot keep selling in India even if valuations are increasing.
fueled politics
The US Federal Reserve will announce its policy on July 31. In such a situation, the stock market will be watching this announcement. The market is confident that the Federal Reserve may announce a rate cut soon. On the other hand, the Bank of England is also trying to look in the same direction. After the Fed, the BII will also announce its rates.
Global market
Global investors will be closely watching earnings from the largest technology companies in the US market, the Federal Reserve’s policy meeting and next week’s employment data. All these indicators can determine the state of the US stock market and other major markets around the world.
