Has the cloud of uncertainty away from the stock market, the market will increase or will there be a stir?
India Share Market Weekly Review: Large positive news such as India Pakistan ceasefire and the US China trade deal brought enthusiasm among the stock market investors in the second week of May. This was the reason that Sensex and Nifty flew high in 2 out of 5 businesses. However, India has made it clear that the operation sindoor continues. In such a situation, now the question is arising in the minds of people whether the era of uncertainty in the market is over. How will the market trend be in the coming week and what to do investors?
How was the Sensex and Nifty move: The start of the week was tremendous for the stock market. The BSE’s standard index Sensex jumped 2,975.43 points, or 3.74 percent, closed at 82,429.90 points. While NSE Nifty made a big jump of 916.70 points. All -round buying became investor, capital increased by Rs 16.15 lakh crore in a single day. On Tuesday, the Sensex fell 1,281.68 points to 81,148.22 points, while the Nifty lost 346.35 points to 24,578.35 points.
On Wednesday, the Sensex gained 182.34 points to 81,330.56 points, while the Nifty also reached 24,666.90 with a profit of 88.55 points. On Thursday, the stock market once again showed a huge rise. The Sensex jumped 1,200.18 points to close at 82,530.74 points, the Nifty also rose 395.20 to 25,062.10 points. This was the highest level of Sensex and Nifty in 7 months. Investors recovered profits in the last market of the week on Friday. The BSE Sensex broke 200.15 points to 82,330.59, Nifty slipped 42.30 points to close at 25,019.80 points. In this way, just 5 business days, the Sensex rose by 2875 points. The Nifty also showed a huge increase of 1010 points.
These factors put the impact on the market: Investors breathed a sigh of relief from the India Pakistan ceasefire and the US China Trade Deal. The US and China have announced the suspension of high customs duty on each other for 90 days. The US has agreed to reduce the fees on Chinese goods from 145 percent to 30 percent, while China announced to reduce the fee on American goods from 125 percent to 10 percent.
Inflation based on the Consumer Price Index (CPI) was 3.16 percent, the lowest level after July, 2019. The market also got support from buying in metal and industrial shares and capital flow of foreign institutional investors. The interest of foreign investors further strengthened the Indian stock markets and reached a 7 -month high. However, on the last day of the week, there was a partial decline in the market due to investors’ profit recovery.
Bounce in these sectors : IT, metal, realty, bank and technology shares showed a lot of jump this week due to rapid improvement in business assumption. Like last week, this time also the shares of companies associated with the defense sector, including drone manufacturers, missiles and constructed equipment manufacturers, were accelerated throughout the week. Paras Defense and Space Technologies, Data Pattern, Estra Microwave Products, Hindustan Aeronautics, Alloy Corporation, India Electronics and India Dynamics as well as drone manufacturers Dronacharya company Dronacharya company Dronacharya Aerial Innovation on BSE.
What do experts say: Market expert Manish Upadhyay said that the previous week for the Indian stock market was going to remove panic. The market has returned once again. The trade war between China, and the ceasefire between India Pakistan, infused enthusiasm among investors. Foreign investor took a good way to the market this week. DII also remained a buyer this week.
Upadhyay said that there will be a boom in the market in this week and the Nifty is likely to reach 25500 to 26000 soon. He said that if an accidental incident occurs, the Nifty can fall once again to 24500. POC, auto sector shares are expected to rise in the coming days. Banking sector shares may also see an increase.
Market expert Sagar Aggarwal Said that in the present situation, the era of certainty from the market seems to be over. If both America and Pakistan persist on their words, then the market will go in a positive direction. If any one of the American monopoly Trump or Pakistani PM Shahbaz Sharif retreats from his point, then a trade war or war situation can be created. In such a situation, the market can once again go in a negative direction.
However, many people associated with the market believe that the news coming from China, Singapore and Hong Kong about Corona virus is worrisome. Test positivity rates there have been more than doubled in five weeks till May 4. A large number of people are reaching hospitals and clinics, they are getting symptoms of corona. In the coming times, it may be negative on stock markets around the world. Investors are also eyeing the discussion on the trade deal between India and the US next week.
Disclaimer: This article is only aimed at information. This is not an investment advice. Be sure to consult your financial advisor before any investment.
