New Delhi. In the absence of any major developments on the domestic front, the direction of the stock markets this week will be decided by the global trend and the activities of foreign investors. Analysts believe that the stock market is expected to remain bullish in the business week starting tomorrow. US GDP data, domestic economy data, the attitude of domestic and foreign investors, and the global market will play an important role in deciding the movement of the Indian market. Last week, the Sensex was up by 1,653.37 points or 1.99 percent. On the other hand, the Nifty jumped by 434.45 points or 1.71 percent.

On Friday, the 30-share BSE Sensex closed at an all-time high of 84,544.31 points with a jump of 1,359.51 points or 1.63 percent. During the day's trading, it had climbed 1,509.66 points or 1.81 percent to reach its all-time high of 84,694.46. Similarly, on the same day, the National Stock Exchange's Nifty closed at a record level of 25,790.95 points, up 375.15 points or 1.48 percent. During the day's trading, the Nifty had reached an all-time high of 25,849.25 points with a gain of 433.45 points or 1.70 percent.

The effect of the reduction in interest rates was seen
after the US central bank Federal Reserve cut key interest rates by 0.50 percent last week, the local stock markets witnessed a record rise. Santosh Meena, Head of Research, Swastika Investmart Ltd said that historically, reduction in interest rates in the US has had a positive impact on emerging markets and India has emerged as a favorite destination among global investors.

FIIs made record purchases.
Foreign institutional investors (FIIs) made aggressive purchases. On Friday alone, FIIs invested more than Rs 14,000 crore in the Indian stock markets. Santosh Meena said, "There is no major indicator to guide the market this week. However, the US macroeconomic data will be important for the market. FII flow will remain an important factor for the Indian stock market, as well as everyone will keep an eye on domestic institutional flow."
Meena said, "Although the market does not seem to be affected by geopolitical risks at the moment, it can pose a big threat to the market in the future. The market may see volatility due to derivative settlement."

Next week will also be a positive
Siddharth Khemka, Head of Research (Asset Management), Motilal Oswal Financial Services, said, "The market is gradually moving up. We expect the positive momentum to continue this week as well due to strong FII inflows, healthy domestic macro factors, and decreasing concerns about a slowdown in the US economy."

Religare Broking Ltd. Senior Vice President-Research Ajit Mishra said, "Although the major event of the Federal Reserve cutting interest rates is over, everyone's focus will remain on the US for the direction of the market going forward. Apart from this, investors will also keep an eye on the flow of foreign funds and fluctuations in crude oil prices."