Stock market: Dollar weakness will have an impact
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Jaipur. Even though BSE and NSE indices may have managed to reach their highest peak last week, this level of the indices could not be maintained even for a day. It can be said that it is unfortunate for Nifty that Nifty took a dive of 256 points from its highest level in a single day. Along with the rise in the stock market, there was a bullish trend in the currency market last week and the dollar increased by 14 paise against the Indian rupee to the level of Rs 83.42, which is a matter of concern for our economy which is largely dependent on imports and the market. But it can also be seen as having far reaching effects. Traders say that the rupee-dollar value could also be a reason behind the continuous selling by foreign institutional investors and the further increase in selling last week. The increase in crude oil prices, increasing international tension and increase in gold and silver prices can be considered as obstacles to the rise in the stock market, but in the week starting on Monday, It is certain that the impact of the annual results being announced by Indian companies will definitely be visible on the stock market and indices.
The boom that started in the new financial year in the Indian stock markets has now turned into stability. According to the data, last week the BSE index fell by 3.32 points and closed at 74244.90, while the NSE Nifty index rose by only 5.70 points and closed at 22519.40. The special thing was that there was a contradiction between the midcap and smallcap indices and the basic index and in contrast to the stability of the basic index, there was a rise in them, which is pointing towards the future of both these sectors. Talking about the bullion market, this week the prices of gold improved by Rs 1700 per 10 grams, while the prices of silver increased by Rs 2100 per kg and the price of gold increased from Rs 72,600 per ten grams to Rs 74,300 per ten grams. And silver increased from Rs 82,600 per kg to Rs 84,700 per kg. Traders say that international tension is a major reason behind the ongoing improvement in bullion business, but this boom has badly affected the customer base.
Regarding the market trend this week, traders say that due to international tension this week, there is little possibility of improvement in the stock market. In such a situation, investors should be cautious. This week, the results of companies like Bajaj Auto, Infosys, ICICI, Hindustan Zinc, HDFC Bank, CRISIL etc. will be announced. There will be natural ups and downs in the market depending on the announced performance and expectations of the companies and in case of decline, investors should look for the opportunity to invest in such companies. According to the choice of businessmen, Steel Authority of India, BHEL, Zomato, TCS, Coal India, HFCL, Yash Bank etc. can be considered as safe investments from the point of view of new investment. This week, the country’s biggest IPO till date, Vodafone Idea’s IPO worth Rs 10 to 11, will be issued in the main board between April 18 and 22 to raise Rs 18 thousand crores, which despite many shortcomings of the company, will be issued at minimum risk. Can be considered an investment opportunity. Earlier, Yash Bank had brought an IPO of Rs 15 thousand crores and after this in January 2023, Adani Enterprises had announced an IPO of Rs 20 crores, which was withdrawn. The IPO of Mforge Autotech, a company on the SME platform, will be available for investors to apply for, but this company, which is running in nominal profits and is in debt, is also offering shares to investors at Rs 93 to Rs 98, which is in line with the premium being demanded. Can be considered risky on this basis. On the other hand, among the new IPO applications coming to SEBI this week, Tolin Tires, a company, has presented its revised draft herring prospectus-DRHP.
Vimal Kothari,
senior journalist
– This is the personal opinion of the author. The author, his family members and acquaintances may have investments in the companies mentioned in the article.
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