The stock market may see a boom next week. The market will keep an eye on the Lok Sabha election results, RBI policy, domestic economic data, global economic data, FII-DII flow and upcoming IPOs. Here we are telling about such factors, which will decide the market movement in the next week… 1. Lok Sabha election results After the exit polls, all eyes will now be on the actual election results on June 4. Market experts expect the final results to be around the exit polls. After June 4, the market will start focusing on the government’s roadmap for the next five years. In a survey of people coming out of polling stations after voting, many agencies indicated that the BJP-led NDA is likely to get more than 350 seats in the 2024 Lok Sabha elections. At the same time, some agencies have predicted that the NDA will get more than 400 seats, in which Narendra Modi will become the Prime Minister for the third time. 2. RBI Policy Market experts say that apart from the election results, another important event for the market is the meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI). The results of the MPC meeting will come on June 7. Most experts expect that there will be no change in the policy rates and the focus will mainly be on the statement of RBI Governor Shaktikanta Das. Barclays Regional Economist Shreya Sodhani said, ‘The GDP figure in the fourth quarter of FY 2024 was 7.8%, which indicates that the growth rate is growing faster than the RBI’s expectations. Which means that the central bank should not be in any hurry to cut rates. 3. Domestic Economic Data Manufacturing and Services PMI figures for May are also to come this week. HSBC Manufacturing and Services PMI figures for the month of May will be released on June 3 and June 5. Experts expect both figures to be higher than the previous numbers of 58.8 and 60.8 recorded in April. Apart from this, the data of foreign exchange reserves for the week ended May 31 will also be released in the coming week on June 7. 4. Global economic data Globally, the market’s focus next week will be on unemployment rate, non-farm-payrolls, JOLTs job openings and quits and job cuts from the US. All these data are important ahead of the FOMC meeting scheduled on June 12 next week. Apart from this, the market will also keep an eye on the manufacturing and services PMI data of many countries including the US, China, Japan and the Eurozone, which will be released on June 3 and June 5. 5. FII-DII flow The market will also keep an eye on the activity of foreign institutional investors (FII). Experts expect FIIs to return after their outflow in the last few months. There may be buying in India due to possible political stability, strong economic growth and manageable inflation. FIIs made net sales of Rs 42,214 crore in the cash segment in May, the highest monthly sales since June 2022, due to their buying in Chinese stocks and a jump in US bond yields (trading at 4.5%). However, domestic institutional investors fully compensated for FII outflows by buying shares worth Rs 55,733 crore in the month of May, which is actually acting as a major supporting factor for the market. According to experts, if the election results ensure political stability, then in such a situation FIIs are also likely to become buyers. 6. Initial Public Offering (IPO) Investors in the primary market will get to see three new IPOs in the coming week. The Rs 130 crore IPO of Cronox Lab Sciences from the mainboard segment will open on June 3. The other two IPOs will be Magenta Lifecare and Satrix Information Security from the SME segment, both of which will open on June 5. In the last trading week, Sensex fell 2% and Nifty fell 1.98%. In the last trading week, Sensex saw a decline of 2%. Nifty also fell by 1.98%. On the last trading day of the week, Friday, May 31, the stock market witnessed a rise. Sensex closed at 73,961 with a gain of 75 points. Nifty also saw a rise of 42 points and closed at 22,530.
