The Indian stock market has been on a roll, and the Nifty bulls are now eyeing the 26,000 mark as the next major milestone. But what’s driving this rally, and what can we expect in the coming week?
According to Ajit Mishra of Religare Broking, the market’s upward trajectory is largely being led by the banking and financial heavyweights. These industry titans have been the mainstay of the market, and their continued strength will be crucial in determining the Nifty’s future course.
So, what are the 5 key factors that will be in focus this week? Let’s take a closer look:
1. Banking and Financial Stocks: As mentioned earlier, the banking and financial sector has been the driving force behind the market’s rally. Stocks such as HDFC Bank, ICICI Bank, and Axis Bank have been doing exceptionally well, and their continued strength will be vital for the Nifty to reach new highs.
2. Global Cues: The global economic landscape has been favorable for Indian stocks, with the US Federal Reserve maintaining a dovish stance and the Chinese government taking steps to stimulate its economy. However, with the US-China trade tensions still lingering in the background, any unexpected twists and turns on the global front could have a bearing on our markets.
3. FII Flows: Foreign Institutional Investors (FIIs) have been major buyers in the Indian market, and their continued interest will be crucial for the Nifty to sustain its upward momentum. Any signs of FII selling could lead to a reversal in the market trend.
4. Earnings Season: The Q2 earnings season is just around the corner, and the performance of India Inc. will be closely watched by market participants. Any positive surprises on the earnings front could lead to a further rally in the market, while disappointing results could lead to a correction.
5. Macro-Economic Data: The government will be releasing key macro-economic data, including GDP growth numbers and inflation rates, which will provide valuable insights into the state of the Indian economy. Any positive surprises on this front could lead to a further rally in the market.
As the Nifty bulls eye the 26,000 mark, these 5 factors will be crucial in determining the market’s future course. With the market at an all-time high, there are bound to be some profit-taking opportunities, but if the underlying fundamentals continue to remain strong, the Nifty could well breach the 26,000 mark in the coming weeks.