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The Indian stock market is anticipated to be influenced by several key events in the upcoming week, including quarterly earnings reports, the speech by the US Federal Reserve Chair, initial public offerings (IPOs), and foreign institutional investor activity.
The release of fourth-quarter (Q4) results will be a major focus, with companies like Zee Media, Sun TV Network, NTPC, Hindalco, Hindustan Copper, and ITC expected to report their earnings. These results will provide insights into the financial performance of these companies and could impact their stock prices.
The US Federal Reserve Chair, Jerome Powell, is scheduled to speak on Monday, May 20. His comments on the economic outlook and monetary policy decisions will be closely watched by investors, as they could influence global financial markets and impact the value of the Indian rupee.
Two new IPOs are expected to hit the market during the week: Awfis Space Solutions and GSM Foils. These IPOs could attract investor interest and provide opportunities for capital raising.
Foreign institutional investors (FIIs) have been selling Indian equities in recent weeks due to factors such as the outperformance of the Hong Kong index, uncertainty over the outcome of the Lok Sabha elections, and high market valuations. This selling activity has contributed to market volatility and could continue in the upcoming week.
Global cues will also play a role in shaping the Indian market trend. Positive cues such as cooling US inflation and strong earnings from tech stocks have boosted global market sentiment. Economic data from major economies, such as the UK inflation data, US initial jobless claims, and China's loan prime rate, will be closely monitored.
Technical analysts anticipate some profit booking around the 22,650 level for Nifty 50, as this level is often considered a significant resistance zone. However, any resultant dip could present an opportunity for investors to enter new positions.
Overall, the upcoming week is expected to be volatile, with a mix of positive and negative factors influencing the market. Investors are advised to closely monitor the key triggers and make informed investment decisions based on their individual risk tolerance and financial goals.
It is important to note that the views and recommendations provided in this analysis are those of individual analysts or broking companies and should not be considered as investment advice. Investors are strongly advised to consult with certified experts before making any investment decisions.