Stock market update: Stock exchanges will remain shut today (May 1) on account of Maharashtra Day, and normal trading will resume on Thursday (May 2). The next market holiday is on May 20 (Monday) for Lok Sabha Elections 2024.
On Tuesday, the stock indices settled marginally lower, snapping morning supported by strong US markets coupled with improved investor sentiment with the relative easing of tensions in West Asia.
Volatility also returned in Indian stock markets after a smooth rally at the start of April, primarily driven by Foreign Portfolio Investor selling activity. Foreign portfolio investors (FPIs) have turned net sellers in Indian stocks lately, as the ongoing geopolitical crisis in the Middle East likely pushed investors to take money off their portfolios.
Foreign portfolio investors (FPIs), who continued to remain net buyers for the third month until a few days ago in April, have cumulatively sold stocks worth Rs 8,671 crore, National Securities Depository Limited (NSDL) showed.
Going ahead, the market will be dominated by corporate earnings releases and the highly anticipated Federal Open Market Committee (FOMC) meeting scheduled for April 30 to May 1.
The US Federal Reserve, in its March meeting, voted to leave the key interest rate unchanged at 5.25-5.50 per cent, keeping the policy rate unchanged for the fifth straight time on the trot to manage high inflation. During the COVID pandemic, the interest rates were near zero.
