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.
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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.
"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.
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.
|Index||Weekly change (%)|
|Nifty Midcap 100||0.3|
|Nifty Smallcap 100||1.5|
Here are the key factors and events that are likely to influence Dalal Street in the week beginning Aug 29:
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.
|Aug 29||Fed official Lael Brainard to speak|
|Aug 30||Fed officials Tom Barkin and John Williams to speak||BoE consumer credit data, Eurozone economic sentiment and consumer confidence data, Germany inflation data||Japan unemployment data|
|Aug 31||Fed official Loretta Mester to speak, crude oil stockpiles data||Germany unemployment data, France inflation and GDP data, Eurozone inflation data||Japan retail sales, industrial production and consumer confidence data, BoJ board member Junko Nakagawa to speak, Hong Kong retail sales data|
|Sept 1||Fed official Raphael Bostic to speak, jobless claims data, manufacturing PMI data||UK housing prices data, Germany retail sales data, Eurozone manufacturing PMI and unemployment data||China manufacturing PMI data|
|Sept 2||Unemployment data, Raphael Bostic to speak||Germany trade data|