InvestorQ : What will be the major cues for the market in the coming week? This looks like an interesting week ahead?
vaishnavi mhatre made post

What will be the major cues for the market in the coming week? This looks like an interesting week ahead?

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diksha shah answered.
1 year ago
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It is surely an interesting and action packed week ahead. Some of the key cues that will impact the market will be as under:

· Most exit polls have predicted a cakewalk for the ruling NDA. For the stock markets that means stability and continuation of the reforms process. That is likely to be positive for the markets considering that the total number of seats allotted to the NDA in the Lok Sabha ranges from 280 to 340. The cut-off for majority is 272.

· The actual results will be out on Thursday May 23rd and that will be the key factor that will drive market going ahead. While markets will react positively to the exit polls, the actual reaction will come after Thursday.

· The trajectory of the Middle East crisis will be crucial. Already Saudi Arabia and Iran are close to loggerheads and the US has given signals of withdrawing diplomatic relations with Iran and Iraq. Things could worsen if Iran continues to create problems at the Strait of Hormuz.

· Oil prices will continue to be crucial considering that they have moved to 73/bbl on geopolitical risks. For India, there is the added risk of trade deficit. Anything above $75/bbl will be a strain on India.

· There are other global cues this week and they include progress on the US China trade war, US corporate earnings, Japan GDP for the first quarter and the FOMC minutes. Cues from China and the US will be closely tracked.

· There are also some very important quarterly results coming out this week which include HPCL, BPCL, Tata Motors, Tech Mahindra and IndusInd Bank. All these will be closely watched in the coming week.

The political cues will be the most important in the coming week with the reaction to exit polls and also the actual election outcome on 23rd May.

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