The domestic market is expected to open flat-to-positive on Monday. Analysts said that post-government formation and known faces in the Union Council of Ministers signal the continuity of programmes. Gifty Nifty at 23,250 indicates a downward bias for the market, as Nifty’s June futures closed at 23,325 last week. 

Karthick Jonagadla, smallcase Manager and Founder Quantace Research, said: The government’s ongoing focus on economic reforms, infrastructure development, and digital transformation continues to create a favourable environment for growth. Enhanced government spending, especially on rural development and infrastructure, is expected to further support the economy.

Japan and Korean markets indicate a mixed signal, while some key markets, including China, are closed today.

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services,said: After the huge volatility witnessed in the market in response to the election results (both exit polls and actual results) the market is slowly stabilising. An important point to consider is the high valuations of Indian stocks, particularly in the broader market. High valuations will attract further selling by FPIs, going forward.” 

Manoj Purohit, Partner and leader - FS Tax, Tax and Regulatory Services, BDO India, said: Given recent announcements made by SEBI permitting NRIs, OCIs, and even RIs to invest up to 100% in FPIs based out of IFSC is a clear indication of the intention to create a compatible platform for foreign investors to give better returns on investments and with ease of doing business and compliances. “FPIs in India will continue to grow under stable government regime, conducive environment backed by inflation control, fiscal prudence and far-sighted vision for India to a make a global hub for capital markets.”

The focus has now shifted to the US Federal Reserve, which meets this week to determine the future course of action.