The market outlook for next week will be guided by several domestic and global factors such as the fourth quarter results, minutes of the Reserve Bank of India’s Monetary Policy Committee meeting, Purchasing Managers Index (PMI) and Foreign Institutional Investors (FII) data, which may lead to market direction and influence investor attitudes.
From April 21 to 25, TATA Investments, HCL Tech, Tata Communications, Bajaj Housing Finance, Axis Bank, Hindustan Unilever and RBL Bank will release their fiscal 25-year results for the fourth quarter.
Bajaj Broking Research said: “In India, on April 23, the Standard & Poor's Global Manufacturing and Services PMI data will be released, providing real-time business activities across the industry and services sector. Together with these industries, minutes of meeting meetings of the Reserve Bank of India Monetary Policy Committee (MPC) will be released, giving the market a deeper appreciation of the central bank's policy situation and the sales phenomenon sent to China.''
Globally, the same day to April 23 – will feature the Standard & Poor's Global Manufacturing and Services PMI to reflect the health of major sectors of the U.S. economy. The initial unemployment claims report on April 24 will be followed, a key indicator of the labor market.
“Overall, this heavy week could increase market volatility and shape future monetary policy expectations,” the brokerage added.
Stocks soared more than 4% last week despite the two-day holiday. Nifty rose to 1,023 points, or 4.48%, and closed at 23,851, while Sensex rose 3,395 points, or 4.52%, to close at 78,553.
Bank stocks led the rally in the market. Nifty Bank closed at 54,290, up 3,287 points or 6.45%.
Announcement of temporary pauses to U.S. tariffs and the prospect of negotiating with other countries also contributed to the relief rally. Additionally, the Reserve Bank of India lowered the tax rate by 25 basis points on April 9, which reduced the return rate to 6%, while its transition from “neutral” to “adaptive”, adding new momentum to investors' prices in further monetary easing.
In the past three transactions, foreign portfolio investors have purchased more than $1 billion worth of Indian stocks after a long sales record.
“The market is now approaching a critical resistance zone between 23,800 and 24,000. Breakthroughs above this level can push the index towards 24,800,” said AVP's Vishnu Kant Upadhyay-Total Capital Services Research and Consulting.
He added: “As long as the index stays above its key moving average, you can buy in a downward situation.”
