By D. Maan, Jadetimes News
Market Closure and Resumption
Today, the Indian stock market is not open for trading due to the celebration of Eid ul Adha. Trading will resume on Tuesday, as stated on the official website of the National Stock Exchange (NSE). The closure impacts all sectors, encompassing stocks, derivatives, and Securities Lending and Borrowing (SLBs). In addition, the morning session of the Multi Commodity Exchange of India Limited (MCX) is now closed, but it will reopen in the evening from 5:00 p.m. till either 11:30 p.m. or 11:55 p.m.
Current Market Trends
The Nifty 50 Index and the BSE Sensex experienced slight increases of 0.5% apiece last week, reaching fresh record highs as market mood became more optimistic. The mid cap index exhibited superior performance, achieving a gain of around 3.6%. Similarly, the small cap index experienced a rise of 5%, surpassing the performance of large cap companies. The optimistic market sentiment indicates a state of stability after the Lok Sabha elections. Analysts attribute this surge to the stronger than anticipated financial performance in various crucial industries during the fourth quarter of FY24.
Economic indicators and the performance of different sectors
From an economic standpoint, the Consumer Price Index (CPI) inflation for May was 4.75%, which is similar to the inflation rate of 4.83% in April. However, food inflation was higher at 8.7%. The majority of sectoral indices experienced weekly increases, with sectors such as Capital Goods, Consumer Durables, Oil and Gas, Auto, Metals, Realty, and Power witnessing gains ranging from 1.5% to 5%. The Bank Nifty had marginal increases, whilst the IT and FMCG indices both saw a fall of almost 1%. Both Foreign Portfolio Investors (FPIs) and Domestic Institutional Investors (DIIs) made net purchases consistently throughout the week.
Asian market trends
Japan's Nikkei 225 index started the week with a bearish trend, dropping by over 700 points to reach 38,106.41 on Monday. Conversely, the Hang Seng index in Hong Kong increased by 100 points to reach 18,041.60, while the markets in Taiwan opened with slight gains. Nevertheless, the Chinese markets exhibited a bearish trajectory, as seen by the decline of the Shanghai Composite Index to 3,016 points. Market analysts predict that the upcoming week will maintain its attention on macroeconomic indicators, inflation rates, and global political events, all of which have the potential to greatly influence market performance. As trading starts in the Indian market on Tuesday, investors will closely monitor five crucial sectors to assess future market trends.