US Federal Reserve policy, fourth-quarter results, global clues for major triggers, push Indian stocks next week
With the preparations for the Indian market, experts say the direction of the stock market will depend heavily on policy decisions from the U.S. Federal Reserve, corporate revenues in the March quarter, macroeconomic data and geopolitical tensions between India and Pakistan following the April 22 PAHALGAM terrorist attacks.
Sensex and Nifty have risen for the third straight up in the past week, with strong foreign fund inflows, strong revenue from index heavyweights and hopes of progress in the India-U.S. trade deal.
The benchmark Nifty index scored 307.35 points, or 1.28%, with revenue of 24,346.70, while Sensex jumped 1,289.46 points, or 1.62%, ending with a score of 80,501.99.
However, the gains were slightly limited due to concerns about geopolitical developments following the terrorist attacks on Jamu and Pahargam in Kashmir.
Looking ahead, investors will watch the U.S. Federal Reserve's monetary policy meeting, which was scheduled for May 7.
It is generally believed that interest rates for the third meeting will remain unchanged at 4.25-4.50%.
Fed Chairman Jerome Powell earlier said cuts were cut twice in 2025, warning that tariff measures by U.S. President Donald Trump could drive higher inflation and hurt jobs.
Back home, the earnings season continues, with major companies including Mahindra and Mahindra, Coal India, Titan, Coforge and Dr. Reddy Labs, will release their fourth-quarter results.
On the economic side, market watchers will track HSBC's comprehensive PMI and PMI final data to further understand the country's growth momentum.
Foreign investors are bullish on Indian stocks. In the week ending May 2, foreign institutional investors (FIIS) bought nearly Rs 76,800 crore worth of shares in cash markets.
This marks a major reversal of the trend as FII sold shares worth over Rs 1.29 crore in the first three months of 2025.
Meanwhile, Domestic Institutional Investors (DIIS) also supported the market with investment worth Rs 9,269 crore.
