The stock market in India went up over the past five days thanks to foreign investors buying stocks, good corporate earnings, low global oil prices, and positive global news. The market gained 2.5% during the week, with the BSE Sensex adding 1,457.38 points and Nifty gaining 440.95 points. The small-cap and mid-cap indices also rose by 2.4% and 2.6%, respectively, and all sectoral indices ended in the green. FIIs and DIIs bought equities worth Rs5,395.13 crore and Rs1,874.25 crore, respectively. In April, FIIs bought equities worth Rs5,711.80 crore and DIIs bought equities worth Rs2,216.57 crore. The rupee closed at 81.83 to a dollar for the week.
The Sensex rose 3.6% and Nifty added 4% in April. Additionally, small-cap and mid-cap indices added 7% and 5%, respectively. With the ongoing Q4 earnings season, the direction of the market in the holiday-shortened week would depend on the outcome of the US Fed Meeting, RIL board meeting for demerger of financial services division, auto sales data, international crude oil prices, and other global cues.
US Fed is expected to raise interest rates by 25 basis points despite an uncertain economic environment. Results from big tech companies in the US showed investors that the worst of the post-pandemic hangover is fading. However, it also showed a decrease in growth. The Nifty is up almost 6% since last month, but investors need to be careful not to get influenced by other people’s emotions when investing.
Neuroscience research shows that humans are biologically equipped to allow more confident people to have greater sway over our beliefs. Participants in an experiment guessed whether the next marble drawn from an urn would be red or green. They were more prone to pick red when they learned that other people had confidently chosen it. Confidence was represented by how fast the other people picked the color and whether they smiled as they did so.
