Market share this week: There has been a lot of volatility in the stock market continuously since May 2020. Since then, stocks in the global stock market have been in bad shape. Its effect is also clearly visible in the Indian stock market. Countries around the world were reducing the rate during the coronavirus infection. Now that the infection has subsided, the policy rate is increased again. The effect of this is that the risk of entering a technical recession has increased in countries like America.
If we talk about the performance of Indian stock markets over the past week, the market has fallen by 6%. The reason is the sale by foreign investors.
If you’re strategizing for the next week, know what’s important to keep in mind.
risk of recession
Investors will keep an eye on US economic data next week. Investors fear the United States could slide into a technical recession for more than 12 months if the Federal Reserve now aggressively raises rates to control inflation.
watch oil prices
Due to the US recession and other concerns, the price of crude is falling. Brent futures prices fell 7% last week. It is clear that its demand could remain weak in the coming days. Its effect is also felt in the stock market.
FIIs have been selling more than they have been buying for 8.5 consecutive months due to tight monetary policies in countries around the world and rising valuations of foreign investors in their own countries. Foreign investors have so far sold Rs 31,453 crore in June. A month before that, in May, there was a sale of Rs 45,276 crore.
Purchases by domestic investors increased
Where on the one hand foreign investors are selling. On the other hand, domestic investors are buying every fall. Domestic institutional investors have made net purchases of Rs 30,312 crore so far in June.
Disclosure of monetary policy meeting details
This week, the minutes of the monetary policy meeting, ie the report of the discussion during the meeting, will be published. From there, we will know what the next steps for RBI will be. It is expected that there will be some relief from retail price inflation data in May. In such a situation, there is less chance that RBI will decide to increase the rate further.
watch the monsoon
After the landfall (rains) of the Southwest monsoon in the last week of May, its pace has slowed down, which is very disappointing. Due to the slow pace and rains in some areas, this affects agricultural production. If the monsoon does not strengthen, investor confidence could be shaken.
Disappointment of retail investors
According to traders, the reason for the market decline last week was the drop in small and mid cap stocks. Retail investors remained panicked by the fall. Last week, Nifty-50, Nifty Midcap 100 and Nifty 500 were negative. This also reflects the sentiment of retail investors. This gloomy atmosphere among retail investors could also persist in the weeks to come.
The board meeting of these companies will be held next week. These can also have an impact on corporate actions.
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