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The results of five State elections that will be declared on Sunday will act as the next big trigger for India’s stock market in the coming week. After a sharp recovery from the lows of last week, the Sensex and the Nifty declined 2 per cent and 1.77 per cent respectively, on Friday. The Nifty after touching the 15,000-mark closed at 14,631 and was down by 263 points. The BSE Sensex fell 983 points to 48,782. After polling came to a close in West Bengal on Thursday, exit polls predicted that both the BJP and the TMC were running neck and neck. In Puducherry and Assam too, the BJP is the favourite.
“Negative advance-decline ratio suggests some profit-taking by traders ahead of the State election results. On a weekly basis, the Nifty has gained 2.02 per cent. While one trigger of State Aassembly results will be over by the weekend, fourth quarter results from majority of companies will be out by May 10. For Nifty, the 15050 level has become a strong resistance while 14141-14269 could be a support for the near term,” said Deepak Jasani, head of retail at HDFC Securities.
Greed and Fear report
India’s weight in the Asia Pacific portfolio will rise, Jefferies’ Chris Wood said in his Greed & Fear report, citing the domestic stock market’s “extraordinary resilience” and optimism on vaccine rollout in the next six months. The Indian ‘overweight’ level on the Asia Pacific relative-return portfolio (excluding Japan) will be increased by 2 percentage points to 14 per cent, back to where it was at the end of last quarter. This has a potential to push up foreign portfolio investments.
Economies in Europe contracted at a slower rate than analysts had expected in the first three months of the year, shrinking by 1.8 per cent year-on-year. Economists surveyed by Reuters had forecast a 2 per cent decline. France’s economy grew 0.4 percent in the first quarter of the year, despite the tightening of restrictions to limit the spread of the Covid-19 pandemic. But Germany’s economy declined 1.7 percent, while the Spanish and Italian economies contracted 0.5 percent and 0.4 percent, respectively.
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