New Delhi: As Stock Market is all set to open on May 5, 2025, i.e., Monday after two days of holidays, let’s see what analysts are predicting. The experts are of the view that the movement in the equity market will depend on the decision of US Federal Reserve rate cut, foreign investors and Q4 Results of domestic companies.
Experts also stated that the tensions between India and Pakistan over the Pahalgam terror attack will also weigh in on the investors’ sentiments. Last week, the BSE Sensex rallied 1,289.46 points and the NSE Nifty climbed 307.35 points
Last week, markets ended on a positive note, courtesy possibility of India-US reaching a trade agreement and sustained pumping in of money by Foreign Institutional Investors. However, market experts are of the view that the investors are not going big due to the fragile global environment amid geopolitical tensions and the ongoing tariff war.
Investors will also keep a watch on HSBC services PMI (Purchasing Managers’ Index) data.
“This week is crucial, packed with key domestic and global triggers. Developments regarding tariff and geopolitical tensions with Pakistan will remain on the radar. On the macroeconomic front, investors would be eyeing the HSBC composite PMI and services PMI data. While on the global front, Fed interest rate decision is due on 7th May,” Ajit Mishra – SVP, Research, Religare Broking Ltd, was quoted by PTI as saying.
Asian Paints, Larsen & Toubro, Titan, Mahindra & Mahindra, and Coal India would announce their Q4 Results of 2024-25 during the week.
Gaurav Garg, Analyst, Lemonn Markets Desk, said that investors are also worried about the potential US recession and ongoing India and Pakistan tensions.
“Domestic markets are expected to remain cautious in the near term amid ongoing geopolitical tensions, although a sharp correction is not currently anticipated. Globally, easing trade tensions between the US and China, coupled with a weakening US dollar, are seen as medium-term positives for emerging markets such as India.
“However, the recent decline in Q1 US GDP growth adds a layer of uncertainty. In this context, upcoming comments from the Federal Reserve Chair on interest rates and inflation during this week’s FOMC (Federal Open Market Committee) meeting will be closely watched and could significantly influence market direction,” PTI quoted Vinod Nair, Head of Research, Geojit Investments Limited.
FIIs have been sustained buyers during the last 12 trading days, Vijayakumar said.
“There are two major factors behind this reversal of FII strategy. One, President Trump’s announcement of a 90-day pause in reciprocal tariffs led to recovery in global equity markets. In this recovery India outperformed. Two, weakness in the dollar, halted and reversed the momentum trade towards US witnessed after Trump’s victory in the elections. The steep decline in the Dollar index from 111 on 11th January to 99 recently facilitated FII inflows to emerging markets, particularly India,” he added.
(With inputs from PTI)
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The Indian stock market opens May 5th, 2025, with analysts focusing on several key factors. The US Federal Reserve’s rate decision, India-Pakistan tensions, and Q4 earnings from domestic companies will heavily influence market movement. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
