InvestorQ : What in your opinion are the major triggers for the stock markets on Wednesday 28 April 2021?
Dia Deshpande made post

What in your opinion are the major triggers for the stock markets on Wednesday 28 April 2021?

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diksha shah answered.
2 weeks ago
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Unlike Monday, when the rally almost appeared to be tentative, the rally on Tuesday was a lot stronger. The Nifty gained 168 points and the Sensex over 550 points on Tuesday as metals and banks boosted the index. However, there were hints of short covering and buying from domestic institutions rather than the global players.

The big event ahead of the market is the Federal Open Markets Committee or FOMC meet outcome expected late on Wednesday. The consensus continues to be that the Fed would hold rates and also keep up its monthly bond buying program. However, the emerging view is that language may be a little less aggressive on liquidity and that could be a worry.

Foreign portfolio investor or FPI action continued to be negative on Tuesday with net selling of Rs.1,455 crore. However, the domestic institutions bought Rs.1,463 crore of equities. For the month of April, the FPIs sold Rs.11,100 crore in equities and the negative trend of the last six weeks appears to be continuing with respect to the FPIs.

Global markets had a rather uncertain day on Tuesday. The Dow closed virtually flat ahead of the FOMC meet outcome but the tech-laden NASDAQ and the European indices were marginally in the negative. The SGX Nifty is also in the red in early trades and one can anticipate pre-FOMC pressure likely on Indian markets, especially on the liquidity front.


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