Market Maelstrom: The Top 5 Factors Driving Thursday's Stock Market Volatility

Wednesday 2nd of April 2025 15:57:51

Ahead of market: 10 things that will decide stock market action on Thursday

The Indian stock market is expected to remain volatile on Thursday, with investors closely watching developments on the global front. Here are 10 key factors that will shape the market's action:

  1. Global cues: The US markets will be closed on Thursday due to Independence Day, which may lead to increased volatility in the Indian market. Investors will be watching global indices, including the Dow Jones and S&P 500, for cues.

  2. RBI's monetary policy: The Reserve Bank of India (RBI) will announce its monetary policy decision on Friday, which may impact the market's direction. Investors are expecting a rate cut to boost the economy.

  3. FII and DII action: Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) will be active on Thursday, influencing the market's direction. FIIs have been net sellers in recent times, while DIIs have been net buyers.

  4. Sectoral performance: The market's performance will be driven by sectoral indices, with IT, pharma, and banking stocks expected to be in focus.

  5. Earnings season: The earnings season is in full swing, with many companies announcing their quarterly results. Investors will be keenly watching the performance of these companies to gauge the overall health of the economy.

  6. Budget expectations: The Union Budget is just around the corner, and investors are expecting announcements that will boost the economy. The budget is expected to focus on infrastructure development and job creation.

  7. Oil prices: Crude oil prices have been rising, which may impact the market's direction. A rise in oil prices can lead to a weakening rupee and higher inflation.

  8. Currency movement: The rupee has been weakening against the dollar, which may impact the market's direction. A weak rupee can lead to higher import costs and inflation.

  9. GDP growth: The GDP growth rate for the quarter ended March 2023 will be released on Thursday, which may impact the market's direction. A higher GDP growth rate can boost the market's sentiment.

  10. Market momentum: The market's momentum will be driven by the performance of sectoral indices, with the Nifty and Sensex expected to be in focus. The market has been trending upwards, with the Nifty and Sensex gaining around 10% in the last one month.

Overall, the market is expected to remain volatile on Thursday, with investors closely watching global cues, sectoral performance, and earnings announcements. The RBI's monetary policy decision and the Union Budget are also expected to have a significant impact on the market's direction.