“Stock Market Volatility Ahead: Analysts Warn of Potential Turbulence as Global and Domestic Factors Influence Sentiments”

Stock Market Trends: Analysts Predict Volatility Amid Global and Domestic Factors

Market sentiments this week are expected to be influenced by a combination of domestic macroeconomic data announcements, global trends, and foreign investor trading activity. Analysts have warned of potential volatility in the stock market following a record rally, citing concerns over elevated valuations.

Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, highlighted the key factors driving market sentiment. He emphasized the importance of monitoring the global oil benchmark Brent crude and the rupee-dollar exchange rate, in addition to domestic factors such as monsoon progress and the upcoming Union Budget in July.

Gour also pointed out the significance of tracking foreign and domestic institutional investors’ activity (FII and DII) and crude oil prices to gauge market sentiment. On the global front, he noted that the US market has seen profit-booking from higher levels, with key economic data releases scheduled for the first week of July.

Arvinder Singh Nanda, Senior Vice President at Master Capital Services Ltd, echoed Gour’s sentiments, emphasizing the impact of major domestic and global economic data releases on market outlook. He highlighted upcoming data points such as HSBC India Manufacturing PMI, HSBC India Services PMI, and S&P Global Manufacturing PMI, along with speeches from US Federal Reserve officials.

Last week, the BSE benchmark and Nifty both posted significant gains, with the Sensex breaching the historic 79,000 mark and the Nifty hitting the 24,000 level for the first time. However, market experts caution that the release of economic data points this week could introduce some volatility, particularly in sectors like auto following the release of monthly sales numbers.

As the new month begins, market participants will closely watch auto sales data and the progress of the monsoon. Global cues, especially from the US, indicate a supportive outlook, with major indices continuing their upward trend despite intermittent consolidation.

In terms of market capitalization, nine of the top-10 most valued firms saw significant gains last week, with Reliance Industries leading the pack. The market valuation of these firms collectively added Rs 2,89,699.42 crore, with Reliance Industries alone adding Rs 1,52,264.63 crore.

Overall, market experts anticipate continued positive momentum in the stock market, albeit with some volatility driven by economic data releases. The focus remains on both domestic and global factors shaping market sentiment, with investors closely monitoring key indicators to navigate the evolving market landscape.

Namit Singh Sengar, a seasoned financial journalist, contributed to this report, providing valuable insights into the current market trends and analysis.