Will Indian stock market fall for 6th straight session tomorrow?
What's the story
The Indian stock market has been on a downward trend for five consecutive sessions. The Sensex and Nifty indices fell over 1% intraday before recovering some losses to close 0.4% lower each on Friday. The decline was mainly due to rising oil prices above $100 per barrel, foreign institutional investor (FII) selling, and other factors that worried investors. So, will it fall tomorrow? Let's find out.
Market anticipation
Fed meeting on July 28-29 to be closely watched
The upcoming US Federal Reserve meeting on July 28-29, will be closely watched by investors.
The meeting comes amid rising oil prices and fears of potential threats to the Strait of Hormuz due to the ongoing US-Iran war.
The Fed's decision could provide clues about future interest rate trends as it grapples with inflation well above its annual target.
Investor focus
Rising oil prices weigh on market
The Indian stock market is also being impacted by rising oil prices.
Crude oil prices surged 10% this week amid renewed US-Iran conflict, with the US military conducting multiple strikes on Iran.
Meanwhile, a host of major companies including Adani Enterprises, Asian Paints, HUL, and Coal India will announce their Q1 results soon. Investors will closely watch these announcements for future market direction.
Market dynamics
FIIs net sellers this week
Foreign institutional investors (FIIs) have been net sellers this week, offloading shares worth ₹7,180 crore.
In contrast, domestic institutional investors (DIIs) have been net buyers with an investment of ₹8,640 crore.
The Indian rupee also weakened for the fourth consecutive week, ending near ₹96.55 against the US dollar amid high crude oil prices and geopolitical uncertainty.