Bitcoin (BTC) Performance and Global Market Trends: Key Influencers in Q4FY24 Results and FII Activity

• Indian stock markets have ended the first month of the new financial year on a volatile note, with both record-high levels and unexpected crashes.
• Despite this volatility, the Nifty 50 reached a new record high of 22,794.70.
• Analysts expect volatility to continue over quarterly results despite the ongoing uptrend in markets.

Indian stock markets have witnessed a volatile start to the new financial year, with the Nifty 50 reaching new highs. However, analysts predict continued volatility due to quarterly results.

Market Volatility Amid Record Highs

The Indian stock markets closed the first month of the new financial year 2024-25 on a volatile note, witnessing both record-high levels and unexpected crashes. Despite this, the Nifty 50 managed to reach a new record high of 22,794.70. Financials, auto, and energy sectors saw gains, but broader indices closed with slight losses.

Analysts Predict Continued Volatility

Analysts expect the volatility to continue, particularly over the release of quarterly results. The ongoing results season will be a key determinant for investors to align their portfolios. They advise traders to consider hedged positions and await clearer signals before making big moves.

Key Triggers for Stock Markets

Several factors will influence the stock markets in the coming week. These include the next batch of Q4 earnings reports, new IPOs and listings, FII activity, global cues, oil prices, corporate actions, and technical views.

Q4 Results

The next batch of Q4 earnings reports will drive stock-specific movements. Major companies like Dr Reddy’s Laboratories, Hero MotoCorp, Larsen & Toubro (L&T), Bharat Petroleum Corp Ltd (BPCL), Hindustan Petroleum, State Bank of India (SBI), Eicher Motors, and Tata Motors are set to release their reports.

9 New IPOs, 4 Listings to Hit D-Street

In the mainboard segment, Indegene IPO will open for subscription on May 6, while TBO Tek IPO and Aadhar Housing Finance IPO will open for bidding on May 8. In the SME segment, Winsol Engineers IPO and Refractory Shapes IPO will open for bidding on May 6.

FII Activity

Foreign institutional investors (FIIs) were net sellers last week, offloading stocks worth ₹2,115 crore. Domestic institutional investors (DIIs) were net buyers, with the net investment worth ₹2,121 crore.

Global Cues

Global market indices, mainly US and UK, ended the week on a bullish note. The US Federal Reserve held interest rates steady on May 1 citing limited progress on the inflation objective.

Oil Prices

International crude oil prices settled lower in the previous session, posting their steepest weekly loss in three months. Brent crude futures for July settled 71 cents lower, or 0.85 per cent, to $82.96 per barrel.

Corporate Action

In the second week of May, several major companies and banks are trading ex-dividend, while others may announce rights issue and other corporate actions.

Technical View

Pressure persists around record high levels for the Nifty, with a close below 22,400 potentially leading to further declines toward the 22,200-21,850 range.

Conclusion

Despite the volatility, the Indian stock markets have started the new financial year on a strong note. However, the ongoing results season, new IPOs, FII activity, global cues, oil prices, corporate actions, and technical views are expected to influence the markets in the coming week.