Markets Ahead: F&O Expiry, Macro Data And Powell's Remarks To Drive Investors' Sentiments

On Friday, Powell indicated that the central bank would look into slashing its interest rate in the upcoming meeting in September. The Fed Chair noted that the time to adjust the policy has now come

Major macroeconomic data in the coming week, along with cues from the global market is expected to drive sentiments in the stock market, experts noted. Monthly derivatives expiry is also due in the week and will leave an impact on movements in the share market, the analysts said.

The US Federal Reserve Chair, Jerome Powell, is also scheduled to deliver his remarks in the week. This is expected to influence the stock markets ahead, reported PTI citing the experts.

Elaborating on the market expectations, Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services Ltd, stated, “This week, we expect the market to witness a gradual up-move with stock-specific action. The focus will shift to monthly F&O expiry as well as global cues. Markets on Monday would react to commentaries of the US Fed Chair at the Jackson Hole Symposium.”

On Friday, Powell indicated that the central bank would look into slashing its interest rate in the upcoming meeting in September. The Fed Chair noted that the time to adjust the policy has now come and the market also anticipates a rate cut in the next meeting of the Fed.

“However, Powell believes that the chances of the US economy entering a recession in the near term are very low. This implies that rate cuts would likely align with consensus expectations, and the possibility of higher rate cuts may be lower,” explained Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS.

Experts further noted that following the speech from Powell, the US markets began rallying upwards and ended on a higher note on Friday. Due to the monthly F&O expiry scheduled for the week, analysts expect markets to continue behaving in a volatile manner.

Vinod Nair, Head of Research, Geojit Financial Services, observed that the Indian share market continued to recover last week as positive economic data from the US helped end concerns of a recession in the country. Further, Nair said that a slump in crude oil prices also helped the domestic markets rally ahead.