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Stock market next week: Global markets are spooked with the events happening in Europe, which are causing volatility. FIIs have been sellers for almost 6 months now. Commodities, especially oil, coal, metals, agri-commodities are hitting highs across the board. These have a bearing on the market and are dampening Dalal Street sentiment. Their impact on markets is visible, with increase in volatility and declining equity prices.
According to stock market experts, global inflation may continue to affect global secondary markets including Dalal Street in India. However, there are certain triggers, which market investors can't afford to miss out. They listed out the below-mentioned top 5 triggers for stock market next week:
1] UP election result: Speaking on the importance of Uttar Pradesh Assembly Elections 2022 results; Ravi Singhal, Vice Chairman at GCL Securities said, "UP elections result will be announced on 10th March, which can work as major short-term sentiment for the market investors as it would indicate about the public sentiment of the largest political state towards the ruling party at both center and state. In fact, much would get indicated by exit polls which will come after the last phase elections on 7th March 2022." Ravi Singhal of GCL Securities advised market investors to keep an eye on the UP elections as they are getting lesser importance in media these days after Russia invaded Ukraine.
2] LIC IPO timing: Ravi Singhal of GCL Securities said that there are news about deferring the LIC IPO timing. As there is no such official notification from either center or from LIC, market investors and observers are advised to keep an eye on that also. Any such official announcement in this regard may inject fresh liquidity in the markets as investors have been holding their money for LIC IPO.
3] Russia-Ukraine war: Anuj Gupta, Vice President at IIFL Securities said that one needs to keep an eye on Russia Ukraine news as it is the biggest trigger for global equity markets. Any development in regard to ceasefire or further escalation of geopolitical tension may lead to movement of global indices on either side of the pole.
4] Advance income tax submission: By March 15th, companies are expected to file their advance tax that would signal about the expected earnings of the listed companies in upcoming quarters. So, those who are indulged in stock specific trade are advised to keep an eye on the advance tax report of the listed companies.
5] Movement of global currencies: Last week, major global currencies like euro and Indian rupee has slipped heavily in spot market. European markets dipped heavily after Euro nosedived against US dollar while Indian rupee went down near 1.10 per cent last week against dollar. So, any further dip in the global currencies in spot market may further work as negative short term sentiment for global markets, said Anuj Gupta of IIFL Securities. He said that soaring crude oil price has also dent global currencies and hence one needs to look at both crude oil price and currency movement.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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