The development caused a flutter across equity markets, with most leading frontline global equity indices trading weak on Wednesday.
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Equity markets this week will be largely guided by trends in global stocks, foreign funds' trading activity and progress of monsoon, analysts said. Investors will also track the movement of rupee against the US dollar and crude oil prices. Benchmark indices Sensex and Nifty closed at fresh lifetime highs on Friday. Market analysts attributed the rally in the markets to the fact that the US Federal Reserve did not raise interest rates, while positive global cues and foreign institutional investors (FIIs) turning net buyers of local equities also supported the uptrend. "The Indian market will be closely monitoring the progress of the monsoon season. Globally, there is expected to be an increase in volatility in the US market over the coming week. This is due to the upcoming semi-annual testimony of Fed Chairman Powell to Congress," said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd. According to analysts, a steady recovery in global indices, especially in the US, .
'Given valuation comfort, we are still most overweight on China and South Korea,' says Saion Mukherjee
FPIs started the current financial year on a positive note and invested Rs 8,643 crore in Indian equities from April 3, data with the depositories showed
While mutual fund managers struggled this year as well, those in the equity category fared better
Analysts said investors are now trying to gauge how high-interest rates will rise in the US and Europe
Adani rout, budget, Fed meet keep investors on tenterhooks
Overall, foreign portfolio investors (FPIs) have pulled out Rs 1.21 trn from the Indian equity markets in 2022, following aggressive rate hikes by the central banks globally
A likely tapering of rate hikes by US Fed is also seen taking the global sheen off the dollar and working in favour of emerging markets
Friday will be a landmark day for the domestic markets with all listed stock entering the so-called T+1 settlement cycle
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The outflow in January came following a net inflow of Rs 11,119 crore in December and Rs 36,239 crore in November
Rate hikes, elevated valuation, and China reopening lead to reallocation of funds
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