Dalal Street Week Ahead | Exit poll, auto sales, India & US GDP among 10 key factors that will keep traders busy next week

The market's mood is expected to remain upbeat, albeit highly volatile, as it approaches the exit poll as well as the general election results, according to experts.

The market had another spectacular week ending on May 24, with benchmark indices reaching new all-time highs. A robust 2 percent rally was driven by select index heavyweights, buoyed by better-than-expected March quarter earnings across key segments ahead of the crucial Lok Sabha election results due on June 4. The market sentiment was further bolstered by a combination of factors: a significant easing in Foreign Institutional Investor (FII) selling, consistent buying by Domestic Institutional Investors (DIIs), the Reserve Bank of India's (RBI) substantial dividend payout, and positive domestic macroeconomic data. Notably, there was a record rise in exports and employment reached an 18-year high in May, which further supported the bullish trend.

As the market approaches the exit polls and the announcement of the general election results, the mood is expected to remain upbeat, albeit with high volatility. Experts suggest that participants will also be closely monitoring the monthly auto sales data and the GDP numbers for the March quarter from both India and the US.

During the week, the Nifty 50 surged by 2 percent, or 455 points, reaching 22,957, while the BSE Sensex climbed 1,404 points, or 1.90 percent, to close at 75,410. The broader markets had a mixed performance: the Nifty Midcap 100 index rose by 1 percent, whereas the Smallcap 100 index declined by 0.7 percent.

Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, anticipates that the market will continue its gradual upward trajectory but expects some volatility in the coming week as the elections and the earnings season draw to a close. Investors are advised to stay vigilant and consider the dynamic factors at play, including geopolitical events, economic indicators, and corporate earnings, which are likely to influence market movements.