Analysts said trading activity in domestic equity markets is expected to remain volatile this week as investors focus on global cues for further direction. F&O expiry, FII activity and movement in rupee and crude will be closely watched by global bank stocks as well as traders.
LIC plans record ₹2.4 trillion investment in next fiscal
The country’s largest investor Life Insurance Corporation of India (LIC) plans to make a record investment. 2.4 trillion in markets, including shares of locally traded companies, in the year starting April 1, according to two people directly familiar with the state-run insurer’s plans.
“Apart from supportive markets, this will not only be the biggest investment ever by LIC, can help maximize returns for policyholders and profits for shareholders, but will also act as an important support system for Indian markets in FY2024.” Can work as well.” The two people said requesting anonymity.
“Approximately 35% of the total investment or 80,000 crores – Rs 85,000 crore could be allocated to shares of listed companies in India in FY2024,” the person said. (Read more)
Banking crisis, F&O expiry, FII inflows to drive Indian equity markets this week
Analysts said trading activity in domestic equity markets is expected to remain volatile this week as investors focus on global cues for further direction. Traders will also be watching F&O expiry, FII activity and movement in rupee and crude as global trends are currently dictating the direction of local stock markets.
Equity benchmark indices Sensex and Nifty declined nearly 1 per cent on Friday for the second straight session under selling pressure in metals, energy and realty stocks.
Rupak Dey said, “Nifty slipped below the crucial level of 16950 as bears regained control of the market. Moreover, Nifty fell after a few days of consolidation, indicating an increase in bearish bets. Momentum The indicator RSI is in a bearish crossover,” Rupak Dey said. Senior Technical Analyst at LKP Securities. (Read more)
Wall Street ended a volatile week higher on Friday as Fed officials eased bank fears
US stocks marked the end of a volatile week on Friday as Federal Reserve officials eased investor fears over a possible liquidity crunch in the banking sector.
While all three major US stock indexes started the session on the heels of a selloff among European banks, repeating the intraday roller coaster ride of recent sessions, they reversed losses by the close of the bell.
All three indices posted weekly gains, capping a volatile week due to an interest rate hike by the Fed and growing concerns over the health of the banking system.
Equity markets rallied as concerns about another banking crisis in the US or overseas weighed on David Carter, managing director at JPMorgan Private Bank in New York. “Wall Street is taking its cues from Washington and other capitals as it relates to interest rates and banking regulations.”
In separate appearances, three regional Fed bank presidents said their belief that the banking system was not facing a liquidity crisis led to Wednesday’s decision to implement a 25 basis point policy rate hike.
But while Fed officials have been viewing additional rate hikes as a strong possibility, financial markets are now favoring the prospect of no hike at the conclusion of its next policy meeting in May.
“The Fed may be a little jittery as it says more rate hikes could happen this year,” said Carter of JP Morgan. “It helps both their inflation target and suggests confidence in our economic system.”
The selloff in European banks’ shares had raised concerns of a possible contagion beyond the threat of regional banks spreading to their larger peers. (Reuters)
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