Upcoming market week: Sensex broke through the 60,000 mark and Nifty 50 broke above 17,900 levels last week before pulling back due to profit booking. Global indices rose slightly as investors reassessed the outlook for monetary policy. In the upcoming trading sessions from September 12-16, ultra-hawkish remarks from the US Fed, coupled with expectations of a 75 basis point rate hike by the European Central Bank (ECB), are likely to play a key role. in the evolution of world markets, including domestic equities. Macroeconomic data on inflation, manufacturing and industrial production are also likely to influence sentiment.
Last week on Friday, Sensex gained 104.92 points or 0.18% to settle at 59,793.14. The benchmark 30-certificate got off to a good start to climb to 60,119.80, an intraday high, but was however corrected amid profit booking after breaking above the 60,000 mark. Meanwhile, the Nifty 50 closed at 17,833.35 up 34.60 points or 0.19% after breaking the intraday high of 17,925.95. Banking and IT stocks outperformed, while capital goods and consumer durables stocks lagged.
However, the market capitalization of BSE-listed companies amounted to almost ₹283.04 lakh crore extending its new all-time high. The previous day, the market capitalization was around ₹$282.67 million.
Overall, during the week of September 5-9, Sensex and Nifty 50 rose more than 1% each.
Notably, on Friday, however, the rupee appreciated 12 paise to end at 9.57 against the US dollar on an easing in the greenback, positive sentiments in domestic equities and a continued inflow of foreign funds. . Last week, a pullback in the dollar was seen ahead of the US inflation data, which will provide greater clarity on the Fed’s hawkish remarks.
Since Sept. 9 this month, REITs have been pumping ₹5,593 crores in the stock market, according to data from NSDL.
Additionally, in the week ending September 2, the country’s foreign exchange reserves stood at $553.105 billion — down $7.941 billion from the previous week — the lowest since September. October 9, 2020.
What to expect from the markets this week?
Vinod Nair, Head of Research at Geojit Financial Services, said: “Bull markets dominated domestic markets as indices moved in parallel with developments in global markets. presidency and 75 basis point rate hikes by the ECB.”
Nair also added, “As Europe’s energy crisis continued to haunt investors, renewed efforts by Chinese policymakers to strengthen its economy bode well for Chinese stock markets. In an effort to stabilize falling oil prices, OPEC+ opted to cut output given the faltering global growth outlook.Domestic investors had an optimistic outlook, supported by strengthening economic data, continued FII inflows and rising corporate activity. Banking and consumer stocks remained the best during the week.
Market direction in the coming week will be determined by signals from global markets as well as important macro data points, such as inflation and manufacturing and industrial production data, which will be released next week. Domestic retail price inflation is expected to rise to 6.9% in August from 6.71% in July.”
India will announce its CPI inflation data for August and IIP data for July on September 12, while WPI inflation data will be presented on September 14.
Amol Athawale, Assistant Vice President – Technical Research, Kotak Securities Ltd, said, “We need to focus more on mid and small cap stocks. Over the coming week, we expect profit taking in financial stocks and outperformance in technology stocks.
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