Analysts are keeping a close eye on key market drivers this week as domestic stock markets remain in focus. Macroeconomic data releases, global influences, and foreign investors’ trading activities are expected to play pivotal roles in shaping market trends. Despite negative global cues last week, benchmark indices surged, with the BSE midcap and smallcap indices reaching all-time highs.
Institutional investors continued to be net sellers during the previous week, underscoring the importance of monitoring institutional flows in the coming days. Santosh Meena, Head of Research at Swastika Investmart Ltd, emphasized the global factors to watch, including crude oil prices, the dollar index, and US bond yields. He also highlighted significant events such as US inflation and the outcome of the ECB meeting, along with upcoming domestic announcements, including India’s IIP and CPI numbers on September 12.
The domestic front will witness the release of industrial production data for July and inflation data for August this Tuesday. The market’s response will be closely tied to these key macroeconomic indicators, along with India’s CPI and WPI inflation and manufacturing output figures. Arvinder Singh Nanda, Senior Vice President at Master Capital Services Ltd, noted the global events that could impact the market, including US inflation, initial jobless claims, industrial production, crude oil inventories, UK GDP and IIP numbers.
Last week, the BSE benchmark surged by 878.4 points (1.34%), while the Nifty climbed 384.65 points (1.97%). This gradual rally was driven by strong domestic macroeconomic data, including robust GDP and PMI figures, painting a positive outlook for the Indian market. Despite mixed global trends, Indian equities remained resilient, improved by the country’s strong economic prospects. Investors continue to be optimistic about India’s growth journey, extending the market rally for the sixth consecutive session.
