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    D-Street Week Ahead: GDP data, foreign fund flows and global cues likely to influence market

    D-Street Week Ahead: GDP data, foreign fund flows and global cues likely to influence market

    D-Street Week Ahead: GDP data, foreign fund flows and global cues likely to influence market
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    By Sandeep Singh   IST (Published)

    Mini

    An official quarterly reading of India's GDP and a slew of central banker speeches from other major economies are likely to influence Dalal Street in a holiday-truncated week.

    An official reading of India's gross domestic product (GDP) in the April-June period will take centrestage on Dalal Street in a holiday-truncated week beginning August 29. Globally, investors will closely track a slew of speeches by central bankers from major economies, after Fed Chairman Jerome Powell's speech at the annual Jackson Hole symposium dashed hopes of moderate increases in COVID-era interest rates.
    The Fed chief vowed to keep hiking rates to tame inflation. "We are taking forceful and rapid steps to moderate demand. We will keep at it until we are confident the job is done," he said.
    Foreign fund flows and any sharp moves in crude oil will also be on investors' radar.
    "Although Indian equities are trading at a premium over other emerging markets, consistent support from FIIs is guiding the domestic market," said Vinod Nair, Head of Research at Geojit Financial services.
    August is on track to be the first month of foreign fund inflows for Indian shares following 10 straight months of outflows. They have made net purchases of Rs 18,421 crore for the month so far, according to provisional exchange data.
    "While the Nifty Bank appears to be the strongest, the Nifty IT is witnessing selling pressure as major players are scaling down their variable pays due to margin pressure," he said.
    Technical view 
    "A decisive breach of 17,300 in the Nifty50 will push the bulls on the back foot, sending the index back towards the 16,900 zone, else consolidation will continue," said  Ajit Mishra, VP-Research at Religare Broking.
    He suggests investors to focus on risk management during the corrective phase and take a stock-specific approach until the 50-scrip benchmark resumes its upmove.
    The week that was
    Last week, Indian equity benchmarks declined around one percent each, following five back-to-back weekly gains, amid sharp losses in the IT pack. However, gains in PSU banking shares helped both indices keep their losses in check.
    A total of 29 stocks in the Nifty50 finished the week lower. Eicher, IndusInd, Bharti Airtel, Asian Paints and HDFC were the top laggards.
    On the other hand, Grasim, NTPC, JSW Steel, Titan and Adani Powers were the top gainers.
    IT stocks dragged both headline indices lower.
     
     
    Broader indices, however, managed to finish the week higher.
    IndexWeekly change (%)
    Nifty Midcap 1000.3
    Nifty Smallcap 1001.5
     
    Here are the key factors and events that are likely to influence Dalal Street in the week beginning Aug 29:
     
    DOMESTIC CUES
    Macroeconomic data
    Official data on changes in India's GDP in the April-June period is due on Wednesday.
    Separate data on activity in eight core sectors — collectively known as infrastructure output data — is due on the same day.
    The outcome of a PMI survey on manufacturing in the country is due on Thursday.
    GLOBAL CUES
    DateUSEuropeAsia
    Aug 29Fed official Lael Brainard to speak
    Aug 30Fed officials Tom Barkin and John Williams to speakBoE consumer credit data, Eurozone economic sentiment and consumer confidence data, Germany inflation dataJapan unemployment data
    Aug 31Fed official Loretta Mester to speak, crude oil stockpiles dataGermany unemployment data, France inflation and GDP data, Eurozone inflation dataJapan retail sales, industrial production and consumer confidence data, BoJ board member Junko Nakagawa to speak, Hong Kong retail sales data
    Sept 1Fed official Raphael Bostic to speak, jobless claims data, manufacturing PMI dataUK housing prices data, Germany retail sales data, Eurozone manufacturing PMI and unemployment dataChina manufacturing PMI data
    Sept 2Unemployment data, Raphael Bostic to speakGermany trade data
     
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