The bullish momentum is likely to persist in the upcoming week starting March 24 despite potential volatility due to the monthly expiry of Futures & Options contracts. Experts suggest that market participants will closely monitor key macroeconomic data releases including PMI figures and US GDP data along with any significant developments related to tariffs.
Dalal Street is the heart of India’s stock market and every week brings new excitement.
Look at the 10 key factors that will shape the market this week.
1. US GDP Numbers
The US economys growth data (GDP) is coming out soon. It tells us how well the worlds biggest economy is doing. If it’s good it can boost confidence in markets everywhere including India. If it’s weak people might get worried.
2. PMI Data
PMI (Purchasing Managers Index) shows how industries like manufacturing and services are performing. This week we’ll get PMI numbers from India and other big countries. In India experts think manufacturing and services might improve a little from last month. Strong PMI can mean more business and a happier market.
3. FII Flow
Foreign Institutional Investors (FIIs) are big players who buy and sell stocks in India. Lately, they have started buying again after a long break. If they keep investing it’s a good sign for Dalal Street. Their mood depends on things like the US dollar and interest rates.
4. VIX (Volatility Index)
The VIX is called the fear index. It shows how much the market might swing up or down. If it’s low the market stays calm. If it rises it means more uncertainty. This week traders will watch it closely especially with F&O expiry.
5. F&O Expiry
Futures & Options contracts end this week. When this happens trading can get wild because people close their deals. This might shake the market a bit so expect some action..
6. US Dollar and Treasury Yields
The US dollar’s value and US bond yields affect money flow into India. The dollar rose a little and yields dropped. If this continues FIIs might keep liking Indian stocks.
7. Oil Prices
Oil prices matter a lot for India because we buy a lot of it. Last week oil prices went up a bit to $72.16 per barrel due to supply worries. If they stay low or drop it’s good news for our market.
8. Domestic Investors
Domestic Institutional Investors (DIIs) have been buying stocks even when FIIs sell. Last week they bought Rs 4338 crore worth of shares. Their support keeps the market steady.
9. IPO Action
This week four small companies (SMEs) will launch their IPOs to raise Rs 185 crore. Big IPOs are quiet but these smaller ones will keep things interesting for investors.
10. Global Events
Other global updates like the Bank of Japan meeting minutes and UK’s inflation data will also matter. These can change how traders feel about risks and affect Dalal Street.
What to Expect?
Last week the Nifty 50 jumped 4.26% to 23350 and the Sensex rose 4.17% to 76906. Experts think this upward trend might continue thanks to FIIs returning and signs of economic recovery. Siddhartha Khemka from Motilal Oswal says attractive stock prices and growth signals are helping.
This week on Dalal Street will be busy with lots to watch—US GDP, PMI, FII moves and more. The market could stay strong but F&O expiry might bring some surprises.