Stock market participants and investors are gearing up for an eventful second week of March as they keep a close eye on various triggers that could impact the market. With the focus shifting to crucial economic data, electoral announcements ahead of General Elections 2024, foreign capital inflow, and global cues, the week ahead promises to be full of action.
The domestic equity benchmarks have been on a winning streak, hitting new all-time highs for the fourth consecutive week. The Sensex and Nifty 50 reached fresh record highs in the previous session and gained about three percent each over the past four weeks. While most sectors traded in the green, with maximum gains in Banks, Metals, and Energy, some sectors like Media, IT, and healthcare ended the week in the red.
However, concerns regarding excessive enthusiasm and profit booking in the midcap and smallcap space, as well as recent regulatory actions on certain NBFCs and city gas distributors, dampened investor sentiment last week. Small-caps saw a drop of 2.18 percent, while mid-caps added 0.36 percent, underperforming the blue-chip indexes.
Analysts expect the markets to sustain their trend with rotational buying despite volatility, with the Nifty 50 inching towards the 22,750-22,800 zone. The ongoing rally is focused on large caps, and traders are advised to continue with a stock-specific approach.
In the upcoming week, investors will be closely watching macroeconomic data releases, including India’s CPI-based inflation, IIP data, and WPI-based inflation. Additionally, several new IPOs and listings are scheduled across the mainboard and SME segments, keeping the primary markets buzzing.
Foreign institutional investors have shown renewed interest in Indian markets, with continuous inflows by domestic institutional investors. FPIs have pumped significant amounts into Indian equities and debt markets, driven by the resilience of Indian stock markets and better-than-expected economic growth.
Global cues, oil prices, corporate actions, and technical views will also play a crucial role in shaping market sentiment in the coming week. Technical indicators point towards continued bullish momentum for the Nifty, with experts expecting the index to maintain its upward trend.
Overall, the second week of March promises to be an eventful one for stock market participants, with a mix of domestic and global factors influencing market movements. Investors are advised to stay informed and consult with certified experts before making any investment decisions.
