December 3rd 2023.
Equity markets are expected to show a positive response to the BJP's major wins in the Madhya Pradesh, Rajasthan and Chhattisgarh assembly polls. This is because a stable political environment has the potential to further bolster investors' confidence and drive stocks higher.
Analysts have suggested that the movement of the domestic markets this week will also be affected by global trends, the trading activity of foreign investors and the Reserve Bank of India's interest rate decision.
Prashanth Tapse, Senior VP of Mehta Equities Ltd., has stated that the ruling party's impressive victory in 3 out of 5 states is paving the way for a new bull phase. He believes that the benchmark Nifty can reach 20,500-20,800 levels.
On the other hand, optimism in the global markets has been a major factor driving the upward movement. V K Vijayakumar, Chief Investment Strategist of Geojit Financial Services, has expressed that the BJP appears to have a clear advantage and the markets will be positive. Sunil Nyati, Managing Director of Swastika Investmart Ltd., has also expressed his optimism on the BJP's success.
Macroeconomic data such as the PMI data for the services sector and data from the US, India and China will be released on Tuesday. The RBI's interest rate decision will be announced on Friday.
Other factors to watch out for include the US 10-year bond yield, the dollar index, the rupee-dollar exchange rate and crude oil prices. Arvinder Singh Nanda, Senior Vice President of Master Capital Services Ltd., has stated that these events will have an impact on the market.
Last week, the BSE benchmark saw a 2.29% increase while the Nifty saw a 2.39% increase. On Friday, the Nifty closed at an all-time high of 20,267.90 and the market capitalisation of listed companies on the NSE surpassed the $4 trillion mark.
Various fund managers and analysts have expressed their optimism on the market outlook. They have stated that the BJP's success in the state elections has sent out a positive message to investors and that the Nifty could reach the 22,000 levels before the 2024 general elections.
Overall, the positive outcome of the state elections has brought a wave of optimism to the equity markets. Investors will be closely watching the macroeconomic data and other key factors to assess the market's performance this week.
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