Last week, the stock market declined by 2.5 %, which is the biggest decline of the last 8 weeks. The decline in auto, pharma, metal and realty sector was faster. Vinod Nair, head of Geojit Financial Services, said that investors are no longer ready to take risks and have been weakened by the results of companies.
Investors may be eyeing these important developments next week:
At the global level, investors will have a meeting of the US Federal Open Committee (FOMC). Interest rates were not changed in the committee meeting held in January. However, the Federal Reserve Bank Chairman Jerome Pavel has said that the US central bank is not in a hurry to reduce interest rate and will be eyeing inflation.
Ukraine-Russia Conversation
In the coming days, there may be talks between the US, Ukraine and Russia in Saudi Arabia. Kayanat Chenwala of Kotak Securities said, “The aim of this meeting is to end the Russia-Ukraine War. This step will be very important in the market sentiment.
Global Economic Data
The focus of market players will be on February manufacturing and services PMI flash data. This data will be released next week for the US, Britain, Japan and other countries.
Domestic Economic Data
In terms of Indian data, the focus will be on the figures of the balance of trade, which will come on 17 January. Also, Foreign Exchange Reserve data will also be monitored.
The stock market players will be eyeing the Foreign Institutional Investors (FIIS), by which the sequence of selling continues. According to experts, until the earning recovery is strengthened and uncertainty about the global trade war is not likely to return to the stock market.
Indian rupee
Investors will also watch the rupee move against the dollar. Last week, after the Reserve Bank’s intervention, the rupee was strengthened. However, experts estimate that the rupee may see more weakness.
Technical view
The Nifty 50 is currently trading below 10 and 20 weeks EMS and is under the grip of Bears.
Activities of companies
Next week, many companies can announce interim dividend, bonus etc., which will also affect the stock market.
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