Indian Stock Market Eyes Continued Growth: Spotlight on NIFTY and SENSEX Performance Trends

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  • After experiencing significant volatility, the Indian benchmark indices resumed their upward momentum last week, with both the Nifty 50 and Sensex achieving their second-best weekly gains in 2024, led by favorable domestic and global factors.
  • Several factors contributed to this upward movement, including expectations of a US Federal Reserve rate cut and forecasts of an early and above-average monsoon season.
  • “The main trigger for the FII selling has been the outperformance of the Hong Kong index Hang Seng, which shot up by 19.33% during the last one month,” said Dr V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Explore the factors behind the recent surge in the Indian stock market and what investors can expect in the near future.

Strong DII’s support

Despite considerable FII selling, the market has demonstrated resilience, largely due to DIIs absorbing the majority of selling. Trendlyne data showed that out of the last 13 sessions, FIIs remained net sellers in 11, withdrawing Rs. 35,527 crore from the Indian stock market.

Impact of Global Events on Indian Markets

Markets also received a boost after US benchmark indices reached record highs. Metal stocks surged significantly following China’s announcement of a comprehensive stimulus package aimed at bolstering its distressed property market.

Volatility to continue?

Looking ahead, analysts anticipate that the volatility in the Indian benchmarks will continue this week, commencing on Tuesday. The market will remain closed for the fifth phase of parliamentary election voting in Mumbai on Monday.

Conclusion

Investors should keep a close eye on various factors including the upcoming election results, global economic data, and corporate earnings reports, which are likely to influence market sentiment and trading activity in the near term.

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