Global trend will affect the market

Mumbai: Domestic stocks, which rallied over half a per cent last week on news of around $2 billion inflows into Adani Group, which has been facing difficulties since the Hindenburg report, along with foreign institutional investors (FIIs) set the direction for the next week. (FIIs) will have an important role. Last week, the BSE’s 30-share sensitive index Sensex gained 345.04 points, or 0.58 percent, to 59808.97 points on the weekend and the National Stock Exchange (NSE) Nifty gained 128.55 points, or 0.74 percent, to reach 17594.35 points.

In the week under review, like BSE heavyweights, investors’ investment sentiment towards small and medium companies was also strong. Due to this, Midcap jumped 417.16 points to 24595.89 points and Smallcap jumped 261.81 points to 27846.40 points on the weekend. According to market analysts, since the release of the Hindenburg report, Adani Group shares fell heavily, which continued to put pressure on the domestic stock market. But the market turned around over the weekend and both the benchmark indices Sensex and Nifty jumped over 1.5 per cent after the Adani group got $1.87 billion investment from GQG Partners.

Apart from this, the market is also supported by the expectation of keeping the pace of the next increase in the interest rates of the US Fed Reserve. However, to rein in the skyrocketing inflation, the Fed Reserve and the European Central Bank have indicated to continue increasing the interest rates. This will have an impact on the domestic stock market next week. Along with this, investors will also keep an eye on the global crude oil price, dollar index and FII investment flow. FIIs pulled out investments from the market for the last three consecutive months in December, January and February. But, he has been a net buyer of Rs 12,592.17 crore so far in March.