The Indian stock market is anticipated to commence the week on a lower note, in line with the subdued sentiments prevailing in global markets. Asian markets registered declines following the release of significant economic data from China and reports hinting at potential tariff hikes by US President Joe Biden on certain Chinese goods.
Last week, Indian benchmark indices ended higher but witnessed a weekly decline of over 2%, primarily due to extensive selling in broader markets. The Sensex closed up by 260.30 points at 72,664.47, while the Nifty 50 settled 97.70 points higher at 22,055.20. The ongoing Lok Sabha elections, along with heavy foreign institutional investor (FII) selling, added to market pressure.
The week ahead holds several key market triggers, including ongoing Q4 results, India’s retail inflation data, domestic and global macroeconomic data, trends in foreign capital flows, and crude oil prices, all of which will influence market movements. Additionally, global cues and news surrounding the general elections will impact market sentiment.
In the international arena, Asian markets traded lower, with Japan’s Nikkei 225 and Topix both declining, while South Korea’s Kospi rose slightly. Futures for Hong Kong’s Hang Seng index indicated a weaker opening. In the US, stocks ended mixed on Friday, with the Dow Jones Industrial Average and the S&P 500 posting gains, while the Nasdaq Composite closed lower.
Key events influencing global markets include a decline in US consumer sentiment to a six-month low in May and China’s consumer prices rising for the third consecutive month in April, while producer prices continued to decline. Meanwhile, India’s factory output slowed in March, according to government data.
Crude oil prices saw a decline following Iraq’s announcement that it would not support further output cuts at the next OPEC meeting. Brent crude dropped to $82.52 a barrel, while US West Texas Intermediate (WTI) crude futures fell to $78.02 per barrel.
Disclaimer: Investors are advised to exercise caution and seek advice from certified experts before making any investment decisions, considering the diverse range of factors influencing market movements.
