Markets Ahead: Inflation Data, Macro Indicators, Rupee Movements To Drive Investors In The Week

Major announcements in the week include the industrial production figures for July and the inflation data for August, both scheduled to be released on Thursday

Global trends, macro economic key indicators, and outlook adopted by the foreign investors would influence sentiments in the equity markets in the coming week, analysts noted. The experts said that investors will keenly be on the lookout for fluctuations in prices of crude oil and movements in currencies.

Notably, crude oil prices have witnessed a major correction in the last few days with the Brent coming in close to $73 per barrel. Investors in India will also observe the macro figures to be released in the week, such as CPI inflation, reported PTI.

Elaborating on the outlook, Shrikant Chouhan, Head of Equity Research, Kotak Securities, noted, “Globally, investors remain optimistic about the possibility of a rate cut by the US Fed and would keenly look forward to the US Fed meet scheduled later this month.”

Major announcements in the week include the industrial production figures for July and the inflation data for August, both scheduled to be released on Thursday. 

Siddhartha Khemka, Head, Research, Wealth Management, Motilal Oswal Financial Services Ltd, estimated that consolidation mode is expected to continue in the market in the near term. 

Notably, the key equity benchmarks experienced a significant decline last week. The BSE Sensex dipped 1,181.84 points or 1.43 per cent last week, while the NSE Nifty decreased 383.75 points or 1.52 per cent during the period. 

In the last trading session on Friday, the Sensex took a fall of 1,017.23 points or 1.24 per cent and ended the day at 81,183.93. Meanwhile, the Nifty plunged 292.95 points or 1.17 per cent to settle trading at 24,852.15.

The collective market valuation of eight of the top 10 most valued companies declined by Rs 2,01,699.77 crore last week. Reliance Industries and Tata Consultancy Services emerged as the biggest laggards in the market.

Vinod Nair, Head of Research, Geojit Financial Services, explained that going ahead, investors will be observing changes in the global oil benchmark Brent crude and the rupee-dollar trend.