Market Momentum: The Top 5 Factors Shaping Stock Market Trends This Week

Wednesday 26th of March 2025 15:40:13

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

The Indian stock market is likely to witness a volatile trading session on Thursday, driven by a slew of factors that will influence investor sentiment. Here are the key things that will decide the stock market action on Thursday:

  1. RBI's monetary policy decision: The Reserve Bank of India (RBI) will announce its monetary policy decision on Thursday, which will have a significant impact on the stock market. A rate cut or a pause in rate hikes could boost investor sentiment, while a rate hike could lead to a sell-off.

  2. GDP data: The second-quarter GDP data will be released on Thursday, which will give investors an idea of the Indian economy's growth momentum. A strong GDP growth number could boost investor sentiment, while a weak number could lead to a sell-off.

  3. Global cues: Global markets will be closely watched for cues on Thursday. A strong performance by the US markets could boost investor sentiment, while a weak performance could lead to a sell-off.

  4. Auto sales data: The July auto sales data will be released on Thursday, which will give investors an idea of the demand in the auto sector. A strong sales number could boost investor sentiment in auto stocks, while a weak number could lead to a sell-off.

  5. RBI's stance on NBFCs: The RBI's stance on non-banking financial companies (NBFCs) will be closely watched on Thursday. A relaxation in norms or a rate cut for NBFCs could boost investor sentiment in NBFC stocks, while a tightening of norms could lead to a sell-off.

  6. FII and DII data: The foreign institutional investors (FIIs) and domestic institutional investors (DIIs) data will be closely watched on Thursday. A strong inflow of funds from FIIs and DIIs could boost investor sentiment, while a sell-off could lead to a decline in stock prices.

  7. Earnings season: The earnings season is almost over, but the last set of earnings reports will be released on Thursday, which could influence investor sentiment. A strong earnings report could boost investor sentiment, while a weak report could lead to a sell-off.

  8. Oil prices: Oil prices will be closely watched on Thursday, as a rise in oil prices could lead to a sell-off in energy stocks, while a decline could boost investor sentiment.

  9. Currency movement: The Indian rupee's movement against the US dollar will be closely watched on Thursday. A strong rupee could boost investor sentiment, while a weak rupee could lead to a sell-off.

  10. Market internals: Market internals such as the advance-decline ratio, the market breadth, and the short interest will be closely watched on Thursday. A strong market breadth could boost investor sentiment, while a weak market breadth could lead to a sell-off.

Overall, the Indian stock market is likely to be driven by a mix of domestic and global factors on Thursday. Investors are advised to stay cautious and wait for the dust to settle before making any investment decisions.