Markets Next Week: LIC IPO, New Margin Rules, Global Cues To Guide

In the week to April 29, 2022, markets ended with marginal weakness led by a slew of clues including the ongoing Russian-Ukraine crisis, the aggressive rate hike bets by the US Fed in the next monetary policy and looming inflationary concerns. Nifty settled at 17102.55, while Bank Nifty also saw a drag of over 0.9%.

The FII selling meanwhile continues with FIIs offloading stake worth Rs. 3648 crore in Indina equities as on Friday.

What shall influence Indian markets over the next week?

New margin rule: There is a new margin rule becoming applicable from Monday and the stock market may be seen to adjust itself to that over the next few trading sessions.

LIC IPO: This is the big event that would influence the capital market and hence as money would be pouring into it, there shall be subdued activity in the secondary market then. Note LIC IPO will open for public subscription next week on May 4, 2022 and will close on May 9, 2022.

Macro and Auto numbers to weigh: Auto sales number and macro data due to be released at the start of the fresh month i.e. the release of manufacturing PMI and services PMI shall be watched out for. The same is due to be released on May 2 and May 5, respectively.

US Fed meet: As per the US monetary policy calendar Fed meet is lined up for May 3 and May 4 and while the markets are factoring in a 50 bps rate hike this time, the focus shall shift on the quantum of rate hikes going forward.

"As of now as we are seeing markets to consolidate for quite a while now and stakeholders in the market should limit exposure and identify sectors showing resilience and pay heed to the earnings season i.e. unfolding for better cues", iterates an expert.