Analysts Say Macroeconomic Data, Foreign Investors’ Activity Among Key Market Factors To Look Out For

Despite the strong performance of the benchmark indices last week, institutional investors continued to be net sellers, indicating that tracking institutional flows will be key in the week ahead.

Industrial production data for July and inflation data for August, both on the domestic front, are scheduled to be announced on Tuesday. 

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Market analysts noted that they expect domestic markets in the week to be driven by macroeconomic data announcements, global factors, and foreign investors’ trading activity. Last week saw the benchmark indices trading on the positive end, despite negative cues from the global market. 

Experts stated that the BSE midcap and smallcap indices touched record all-time highs on Friday last week. Despite the strong performance of the benchmark indices, institutional investors continued to be net sellers in the week, indicating that institutional flows will be a key component to be tracked in the week ahead. 

Talking about the movements on the global front, Santosh Meena, head of research at Swastika Investmart Ltd. said, “On the global front, close attention will be paid to movement in crude oil prices, the dollar index, and US bond yields. Global factors such as the US inflation and the outcome of the ECB meeting will be of significance,” as reported by PTI. 

Meena further stated that domestic IIP and CPI numbers are expected to be revealed on September 12. Additionally, industrial production data for July and inflation data for August, both on the domestic front, are scheduled to be announced on Tuesday. 

Master Capital Services Ltd’s senior vice president, Arvinder Singh Nanda, commented on the macroeconomic data and said, “On the macro front, the market will react to some of the key domestic events such as India's CPI and WPI inflation, IIP numbers, manufacturing output. Major global events that can impact the market are US inflation, initial jobless claims, industrial production, crude oil inventories, UK GDP, and IIP numbers would be in focus.” 

Vinod Nair, Head of Research at Geojit Financial Services, noted that inflation and industrial production numbers will help provide an outlook for the market. “Domestic indices experienced a gradual rally throughout the week, buoyed by strong domestic macroeconomic data such as robust GDP and PMI figures, which painted a positive outlook for the domestic market,” added Nair.

Notably, the BSE benchmark gained 878.4 points, inching up by 1.34 per cent and the Nifty climbed 384.65 points, up by 1.97 per cent.