Share Market News / Will the market continue to rise from today or will the decline return?

Share Market News: The Indian stock market showed a great boom last week. The BSE Sensex jumped 3,076.6 points, bringing a smile to the faces of investors, while the NSE Nifty also closed with a gain of 953.2 points. This boom has given relief to investors after the recent big sell-off in the market. Now all eyes are on the new week whether this boom will continue or the market will see a decline.

Expectations created by the return of foreign investors

According to Siddharth Khemka, Head of Asset Management Research, Motilal Oswal Financial Services Limited, the main reason for the rise in the Indian stock market is the return of foreign institutional investors (FII). Attractive valuations and signs of improvement in the Indian economy have increased the trend of foreign investors towards the Indian market. Investors will now have to keep an eye on the performance of the rupee against the dollar and Brent crude oil prices as well.

According to Ajit Mishra, Senior Vice President, Religare Broking Limited, due to no major economic developments on the domestic front, investors will mainly focus on the settlement of derivative contracts of March and the activities of FIIs. Along with this, the US stock market, tariff-related developments and GDP growth rate data will also play an important role in determining the direction of the market.

FII selling reduced

Vinod Nair, Head of Research, Geojit Financial Services, said that the domestic market has concluded the week with a steady improvement. Investment flow in emerging markets is increasing due to a possible reduction in risk-free rates and improvement in the dollar index. Apart from this, the selling of foreign institutional investors (FIIs) has now reduced and they have again become net buyers in the Indian market, which has strengthened the market sentiment.

According to the data, FIIs bought shares worth Rs 3,239.14 crore on Thursday, while on Friday also they bought shares worth Rs 7,470.36 crore. This trend indicates that the market may remain strong for now.

Prospects for next week

Global cues will play an important role in determining the direction of the stock market next week. Volatility in US markets, tariff-related developments and activities of foreign investors may impact the market. According to analysts, although temporary fluctuations in the market are possible, overall the Indian stock market may remain positive. Investors are advised to remain cautious and invest with a long-term perspective.