The direction of the stock market this week will be decided by the results of the Lok Sabha elections and the interest rate decisions of the RBI, experts’ opinion

Market Outlook this week: The direction of the stock market this week will be decided by the results of the general elections and the interest rate decisions of the Reserve Bank of India. Analysts have expressed this opinion. Apart from this, the exit polls are expecting a big victory for the BJP-led National Democratic Alliance (NDA) and strong GDP growth figures may lead to a rise in the stock markets on Monday. The exit polls on Saturday predicted that Prime Minister Narendra Modi will retain power for the third consecutive time.

Counting of votes cast in the Lok Sabha elections and the Andhra Pradesh and Odisha Assembly polls is scheduled on June 4 and results for all 543 Lok Sabha seats and state assembly elections are also expected to be declared on the same day.The direction of the market will be decided by the results of the general elections. The Reserve Bank of India’s Monetary Policy Committee (MPC) is to meet this week and its results are to be announced on June 7. The May data of manufacturing and service PMI is also to be announced this week. At the international level, the macroeconomic data of America and China will also play an important role in deciding the direction of the market this week.

Also read: FPI Out Flow: Amid uncertainty over election results, foreign investors sold shares worth Rs 25,586 crore in May, invested Rs 8,761 crore in the bond market

What do experts say

Santosh Meena, Research Head of Swastika Investmart, said that now everyone’s eyes are on the most important development, the results of the Lok Sabha elections to be announced on Tuesday. Before that, market participants will react to the ‘exit poll’. He said that the market is watching it with caution, and the market may rise after the ‘exit poll’. However, if the results are contrary to this, some ‘panic’ can be seen in the market. Santosh Meena said 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. The results of the MPC meeting will come on June 7. Meena said that after the election results, everyone will keep an eye on the attitude of foreign investors. On the global front, the macroeconomic data of America and China will play an important role. The May data of manufacturing and service PMI is also to come this week.

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The exit poll results, which are giving a clear lead to the NDA with around 360 seats, may lead to a strong rally in the market on Monday.” He said that after the market closed on Friday, the gross domestic product (GDP) growth rate figures for the financial year 2023-24 were better than expected at 8.2 per cent. This is also expected to give momentum to the market.

Siddharth Khemka, Head of Retail Research, Motilal Oswal Financial Services Ltd, said, “Along with the exit polls, the market will also react to the GDP data on Monday.

A report by MK Research says that if the final results are also like the exit polls, uncertainty will go away from the market.

Last week, the BSE Sensex of 30 stocks fell by 1,449 points or 1.92 percent. The National Stock Exchange’s Nifty fell by 426.4 points or 1.85 percent. The Sensex had reached an all-time high of 76,009.68 points on May 27. On the same day, the National Stock Exchange’s Nifty also reached its all-time high of 23,110.80 points.