The Indian stock market experienced a significant resurgence, buoyed by enhanced investor confidence, increased foreign investments, and favorable international trends. As bullish momentum surged back into the market, traders are anticipating further upward movement as the fiscal year 2024-25 approaches its conclusion. With a week left in the financial calendar, market participants are keeping an eye on several pivotal events that could influence trading activities.
Key Market Developments Ahead
As the last week of March unfolds, traders are focused on several key market drivers, including:
- March derivatives contract expiry
- Potential tariff announcements from Donald Trump
- Foreign fund inflows
- Domestic and global economic indicators
The benchmark indices, Sensex and Nifty 50, have extended their winning streak to five consecutive days. The NSE Nifty 50 closed with a gain of 0.69% at 23,350.4, while the BSE Sensex climbed by 0.73% to reach 76,905.51, marking their highest close in six weeks. Over the week, these indices advanced approximately 4.2%, with mid-cap and small-cap stocks witnessing remarkable surges of 7.7% and 8.6%, respectively—their largest weekly gains in nearly five years.
Investor Wealth Surges
During this five-day rally, equity investors saw their wealth increase by an impressive ₹22.12 lakh crore. However, despite this rise, the Nifty 50 remains around 11% below its all-time high. According to Puneet Singhania, Director at Master Trust Group, the recent gains can largely be attributed to technical buying and value accumulation within key demand zones, rather than significant shifts in market fundamentals.
Upcoming IPOs and Listings
The primary market is expected to remain somewhat subdued, with a few initial public offerings (IPOs) and listings scheduled. Specifically, four new IPOs are set to open for subscription, while shares of five small and medium enterprises (SMEs) will be listed on either the BSE SME or NSE SME platforms.
Foreign Institutional Investors (FIIs) Turn Positive
Foreign institutional investors have shifted to net buyers, attracted by appealing valuations, which has helped sustain the market’s upward momentum. In the cash segment, FIIs recorded a net inflow of ₹5,819 crore, complemented by a ₹4,337.80 crore investment from domestic institutional investors (DIIs). Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investment Services, noted a significant shift in FII strategy, with a marked increase in buying activity following a period of relentless selling.
Global Market Influences
Global economic signals are also crucial as the US markets prepare for potential tariff-related news and GDP growth data releases. Despite a brief recovery in the US stock market, indicators suggest that volatility might continue. Upcoming reports, such as the US House Price Index and UK inflation figures, are set to be released soon and could further impact investor sentiment.
Corporate Actions and Technical Insights
Next week, several companies, including TVS Motor and REC, will trade ex-dividend, while others will offer ex-bonus shares. On the technical side, the Nifty 50 has recently broken out of the 22,250-22,650 range, reaching a critical resistance level around 23,400. A successful breach of this threshold could signal additional gains ahead.
In summary, as we approach the close of the fiscal year, the Indian stock market is poised for potential growth, driven by a confluence of factors ranging from domestic dynamics to global economic indicators. Investors should remain vigilant and ready to adapt to the rapidly evolving landscape.
