Due to both domestic and international factors, the Indian benchmark indices resumed their upward momentum last week after experiencing significant volatility. The Nifty 50 and Sensex both achieved their second-best weekly gains in 2024.
With a gain of 2.03%, the Nifty 50 recorded its biggest weekly gain since January 2024. Similarly, the Sensex recorded its highest weekly gain since January, ending the week with a gain of 1.85%.
Factors Driving the Upward Market Trend and Metal Stocks Surge
This upward trend was caused by several factors. First, the US Federal Reserve was expected to lower interest rates. Furthermore, expectations of above-average rainfall and forecasts pointing to an early start to the monsoon season improved market sentiment.
In addition, stable crude oil prices, increased voter turnout in the fourth phase, and robust domestic purchasing all contributed significantly to the market’s upward movement. Additionally, the record highs reached by US benchmark indices gave markets a boost.
In contrast, metal stocks saw a sharp increase after China announced a massive stimulus plan meant to support its struggling real estate sector. The actions include loosening restrictions on mortgages and promoting the purchase of unsold properties by local governments.
The Nifty Metal index reached a historic high of 9,633 points in the most recent trading session, which was a noteworthy accomplishment. The index finished the day with a noteworthy gain of 7.03%, indicating robust bullish momentum within the metals industry.
Anticipated Market Volatility Amid Key Economic Events and Election Results
According to analysts’ predictions, this week’s volatility in the Indian benchmarks will start on Tuesday and continue throughout the week. For Monday’s fifth phase of the Mumbai parliamentary election, the market will stay closed.
The January-March quarter results, voter turnout in the fifth phase of the elections (particularly in the Mumbai region), macroeconomic data from India and overseas, foreign fund withdrawals, changes in crude oil prices, and global market cues are just a few of the variables that investors will be closely monitoring throughout the week.
This week’s trading activity and sentiment in the market could be impacted by these factors.
The upcoming week is short due to holidays, and the market will continue to watch earnings announcements, the results of ongoing elections, and the performance of the global index for more clues.” SVP of Research at Religare Broking, Ajit Mishra, stated
“The majority of important sectors saw growth during the uptrend, with the real estate, metal, and energy sectors outpacing FMCG in terms of gains. Mishra continued, “The midcap index hit a record high and gained between 4.5% and 5.6%, highlighting the notable buoyancy in broader indices.
