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In a notable update for investors, both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) will remain closed today (May 1) in observance of Maharashtra Day. Regular trading activities are set to resume on Thursday, May 2. The next market holiday is scheduled for May 20 (Monday) due to the Lok Sabha Elections 2024.
Tuesday saw a marginal dip in stock indices, breaking from the positive momentum earlier in the day. This shift was influenced by robust performances in the US markets and improved investor sentiment, attributed to easing tensions in West Asia.
Volatility reemerged in Indian markets, following a smooth April rally largely driven by Foreign Portfolio Investor (FPI) activity. Recent geopolitical tensions in the Middle East prompted FPIs to turn net sellers, with cumulative stock sales amounting to Rs 8,671 crore, as reported by the National Securities Depository Limited (NSDL).
Moving forward, market dynamics are expected to be shaped by corporate earnings releases and the eagerly anticipated Federal Open Market Committee (FOMC) meeting scheduled from April 30 to May 1.
The US Federal Reserve, maintaining its key interest rate at 5.25-5.50 per cent during the March meeting, opted for stability amidst concerns of high inflation. This decision marked the fifth consecutive time the policy rate remained unchanged, a strategy employed to manage economic challenges amidst the COVID-19 pandemic, during which interest rates remained near zero.
