Scholarship next week: Global markets are spooked by events in Europe causing volatility. FIIs have been sellers for almost 6 months now. Commodities, especially oil, coal, metals and agricultural products are reaching all-time highs. These affect the market and dampen Dalal Street sentiment. Their impact on the markets is visible, with increased volatility and falling stock prices.
According to stock market experts, global inflation could continue to affect global secondary markets, including India’s Dalal Street. However, there are certain triggers that market investors cannot afford to miss. They have listed the top 5 triggers mentioned below for the stock market next week:
1]Result of the UP elections: Speaking on the significance of the results of the Uttar Pradesh Assembly elections in 2022; Ravi Singhal, Vice Chairman of GCL Securities, said: “The UP election result will be announced on March 10, which may be a major short-term sentiment for market investors, as it would indicate the public sentiment of the larger State politics towards the ruling center and state party. In fact, a lot would be indicated by the exit polls that will come after the last phase elections on March 7, 2022.” Ravi Singhal of GCL Securities advised market investors to keep an eye on the UP elections as they become less prominent in the media these days following Russia’s invasion of Ukraine.
2]LIC IPO Schedule: Ravi Singhal of GCL Securities said there was news about the postponement of the timing of LIC’s IPO. As there is no such official notification from either center or LIC, investors and market watchers are advised to keep an eye out for this as well. Any such official announcement in this regard could inject new liquidity into the markets as investors held back their money for LIC’s IPO.
3]Russia-Ukraine War: Anuj Gupta, vice president of IIFL Securities, said one should keep an eye on news from Russia and Ukraine as it is the main trigger for global stock markets. Any development regarding the ceasefire or a further escalation in geopolitical tensions may cause global indices to move across the pole.
4]Advance filing of income tax: By March 15, companies are expected to file their withholding tax which would signal the expected profits of listed companies over the next few quarters. Thus, those who engage in stock-specific transactions are advised to keep an eye on the prior tax report of listed companies.
5]Movement of world currencies: Last week, major global currencies like the Euro and the Indian Rupee fell sharply in the spot market. European markets fell sharply after the euro fell against the US dollar, while the Indian rupee fell almost 1.10% last week against the dollar. So any further declines in global currencies in the spot market could still work as short-term negative sentiment for global markets, said Anuj Gupta of IIFL Securities. He said the surge in crude oil prices has also rattled global currencies and therefore one needs to look at both crude oil price and currency movements.
Warning: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.
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