India’s Stock Market Poised for Volatility Amid Key Economic Events and Budget Anticipation

Stock Market

India’s stock markets have been unstable in the first half of 2024. After the recent Lok Sabha elections, the upcoming Budget in July is expected to greatly affect the markets. This week, the market stayed high, but the Nifty index couldn’t go past 670 for three days in a row. Still, the Nifty stayed in a small range and closed near its highest level at 23,501. The Bank Nifty index went up by over 35 points, closing at 5,166, making it the biggest weekly gain of 2024 and continuing a six-week winning streak.

Stock Market Poised

Different sectors performed differently. Private Banks went up by nearly 45%. The Financial Services and IT sectors also did well, while the Metals and Realty sectors showed positive movement. On the other hand, the Auto sector went down by 3%, and the FMCG, Pharma, Power, Energy, PSU Banks, CPSC, and Media sectors went down too.

Looking ahead to next week, several important events are expected to influence the market. On June 25, the US Consumer Confidence figures will be released. In India, the Bank Nifty expiry is scheduled for June 26, followed by the monthly Nifty expiry on June 27. Additionally, the US Fed Bank Stress Test results, US Durable Goods Orders data, US Q1 GDP data, and the Bank of England’s Financial Stability Report will be released on June 27. On June 28, Japan’s May Industrial Production, UK’s GDP figures, and US May PCE figures will be announced.

Institutional activities will also be important to watch. Foreign Institutional Investors (FIIs) have been net buyers for another week, purchasing shares worth ₹9,103 crore during the week of June 21. Domestic Institutional Investors (DIIs) bought shares worth ₹9,575 crore during the same period, with a total purchase of ₹2,447 crore in June so far. This is a positive sign for the market.

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The trading week starting June 24 will also see new IPO activities, adding more interest for investors. The stock market is expected to be very active with 10 new companies planning to sell shares this year. On the main board, two big companies, Elite Blenders (₹1,500 crore) and Raj Iron and Steel (₹171 crore), are selling shares. The Stanley IFA Style share sale will end on June 25.

In the smaller companies segment, several share sales are ending soon: Shivalik Power Control, Sylvan Ply Board, Mason Infratech, and Vissman Global Sales will all end on June 24. Ek Co Global Services will start selling shares, and Divine Power and Petro Carbon Chemicals will start selling shares on June 25. DN Stan Tech will start selling shares on June 26.

Next week is important because it marks the end of the June trading period, creating competition between buyers and sellers. Experts say that many people are betting on the market staying around 23,500 to 23,600 points, while others are betting on it staying around 23,400 to 23,500 points.

The market will also react to the decisions made in the 53rd GST Council meeting on June 22. If the market falls, it might be a good time to buy shares. The Nifty index is expected to have support between 23,400 to 23,500 points and resistance between 25,580 to 23,620 points. For the Bank Nifty index, support is expected between 51,200 to 51,000 points and resistance between 51,960 to 52,200 points.

These factors will influence the market’s direction for the week. Investors should talk to their SEBI-registered financial advisors before making any decisions.