LIC IPO, Fed Meet, Q4 results, other factors to watch

The market kept the bears in check for the third consecutive week ending April 29, but losses were capped at less than 0.5% due to jitters from global peers and mixed March quarter results. Jitters in global markets combined with a mixed start to fourth quarter earnings on the home front kept volatility elevated throughout the week. The BSE Sensex lost 136 points to end the week at 57,061, and the Nifty50 fell 69 points to 17,103, but more pressure was on broader markets as the Nifty Midcap 100 and Smallcap 100 indices fell by 1.4% and 2.7% respectively.

All in all, it was another week of consolidation for the market and the same type of trend is also likely to continue in the upcoming shortened holiday week, given the ongoing geopolitical tensions and high oil prices, keeping the inflation concerns intact, although the market would first react to auto sales numbers on Monday and as we move forward we will focus on the Fed’s interest rate decision, IPO LIC’s stock market and economic data points, experts said, adding that the stock-specific action is likely to be driven more by the corporate earnings season.

“Participants should limit their positions and focus on identifying sectors/themes that show resilience to consolidation bias. close earnings looking for clues,” said Ajit Mishra, VP of Research, Religare Brokerage.

March quarter results

As we enter the fourth week of the March quarter earnings season, nearly 200 companies will release a quarterly earnings dashboard, including big names such as Reliance Industries, HDFC, Britannia Industries, Hero MotoCorp, Tata Steel, Titan Company and Kotak Mahindra Bank.

IPO of LIC

The initial public offering (IPO) of Life Insurance Corporation (LIC) will also be open from May 4 for subscription. The government will sell Rs 20,557 crore worth of shares in the IPO. Given the gigantic size of the issuance, the IPO should test investors’ appetites and the liquidity flowing into the IPO may slightly influence secondary markets.

Most experts expect LIC’s IPO demand from all categories of investors. Half of the offer is reserved for qualified institutional buyers, 15% for non-institutional bidders and the remaining 35% for retail investors.

In addition to the IPO of LIC, the allocation of the shares of Campus Activewear and Rainbow Children’s Medicare will be finalized at the end of next week.

US Fed meeting

The US Fed will decide its monetary policy in the coming week. Markets are pricing in a 50 basis point rate hike this time around and the focus would be on their commentary on the quantum of future rate hikes. If there is a gap in the quantum of rates, the market will react accordingly.

Besides the FOMC meeting, the focus will also be on the Bank of England, where experts expect a 25 basis point hike. “The BOE has raised interest rates since December and is expected to rise another 0.25% next week. Currency movement will depend on the BOE’s stance on future hikes as well as balance sheet reduction,” he said. said Ravindra Rao, Vice President – Head Commodity Research at Kotak Securities.

Russia Ukraine War

The war between Ukraine and Moscow, which seems to be interminable, should keep stock markets volatile and raise inflation concerns for longer, as reports indicate that the new phase of war is likely to have been threatened. by Russia, hence the sentiment of analysts. both sides appear prepared for a protracted conflict that could spill over beyond the battlefield, as damage from the war that has entered week nine mounts on Ukraine.

FII Sale

The outflow of FIIs is another factor keeping the markets capped higher, although domestic institutional investors have consistently struggled to offset FII outflows. Experts remain confident that the FII stream will return to India in the second half of 2022 given the economy is much more resilient.

Macrodata

Traders will also be reacting to a host of macro data that will be released during the week. This includes PMI data, preliminary export and import data, and loan and deposit growth data.

Clever technical insights

Santosh Meena, Head of Research, Swastika Investmart Ltd., “Technically the Nifty is stuck in the 16,850-17,450 range and any decisive move in this band will dictate the future direction of the market. If the Nifty slips below the level 16850 there will be a risk of a major correction where 16,600/16,400 are the next important support levels On the upside, 17,300 is immediate resistance while if Nifty manages to break the 17,450 level, 17,600 will be the next hurdle Banknifty has a critical support zone of 35,500-35,000 and if it slips below this zone, there is a risk of movement towards the 34,000 level. 000 is a critical supply zone; beyond that we can expect a short cover rally.”

Read all the latest IPL 2022 news, breaking news and live updates here.

About Clara Barnard

Check Also

Logistics Industry AGV Market Size and Forecast

New Jersey, United States – Comprehensive analyzes of the fastest growing companies Logistics Industry AGV …