Dalal Street Week Ahead: Factors That Will Impact Stock Market

The stock market is likely under a lot of pressure next week until the severity of the new COVID-19 variant emerges. Check more details in the following section. 

People generally get excited when there is a sale around. But, it was a Black Friday sale, traders and investors looked nervous as the Indian equity market saw a big fall last week due to the worries of the new COVID-19 variant globally. At the week, Nifty & Sensex ended with a cut of more than 4%, the highest cut since January, dragged by losses across financial, automobiles, and consumers. 

For the next week ended November 26, the Sensex and Nifty 50 tumbled by 4.2% each. The Nifty50 index lost 738.4 points and the 30-scrip gauge 2,528.9 points. 

The new COVID-19 variant, FII’s behavior, and macro numbers are the key factors driving the market next week. Covid will remain key triggers to the market where the market is interested to know the efficacy ratio of various vaccines against a new variant of COVID.  

Dalal Street Week Ahead

The market will keep an eye on India’s GDP to assess the pace of recovery from the pandemic, especially after the news of detecting a new Coronavirus variant spread in the financial market globally. Auto sales will be in the spotlight as manufacturers report their monthly numbers.  

The new coronavirus variant will impact the economy hugely. The winter session of Parliament will begin from November 29, which is set to introduce 29 Bills, including Cryptocurrency. 

Here are the Key Factors and Events that are Likely to Influence Dalal Street Week

Omicron Variant

India has successfully controlled the spread of Coronavirus in the last couple of weeks, but the resurgence of new variants in several European nations led to new COVID-19 restrictions. 

Crude Oil Prices

Oil prices hit a big rise during the last week that will also impact the stock market. 

FII Flow

Foreign Fund Flow will be focused once again as last week FII net sold India equities worth Rs. 12,650.6 crore or $1.7 billion after the net purchase of Rs. 18,745 crore or $2.5 billion in the previous week. 

Auto Sales

Automobile sales for November will be keenly watched for new technologies in the market.  

IPOs 

IPOs will remain active in the coming week.  

Macroeconomic Data

Official data on India’s GDP will be released soon.¬†

Other important factors are F&O and Global cues that are to be seen in the coming week of the stock market.

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