Dalal Street broke a series of records yet again with the 30-scrip benchmark, the S&P BSE Sensex index, surpassing the 60,000 mark decisively. IT and oil & gas shares were the main propellers last week aiding the market's surge to fresh peaks, while realty stocks too saw a high demand. Spaces such as metal and PSU banking played spoilsport.
For the week, the Sensex index rose 1,032.6 points or 1.8 percent and the 50-member benchmark Nifty added 268.1 points or 1.5 percent.
Dalal Street week ahead
This week, analysts will keenly monitor official data on core sectors and manufacturing PMI data for more clarity on where the economy stands against the pandemic.
"In a relatively quiet week for domestic economic data releases, the market is bound to track global cues for direction. The manufacturing PMI index for September will help in forming a view on business activities during the month," said Vinod Nair, Head of Research at Geojit Financial Services.
Volatility seen in the markets last week may seep into the week ahead, with the expiry of monthly derivatives (futures & options) contracts due on Thursday.
"Considering the increased concerns around chip shortage and the resultant dampened sales prospects, monthly sales numbers of the automobile sector are sure to grab eyeballs to determine a future trend in auto stocks... In the current volatile market, investors must carefully invest only in fundamentally sound stocks, as the market is fickle and unpredictable," said brokerage Samco.
The first batch of monthly auto sales reports, due by the end of the week, will also be tracked closely. Manufacturers' remarks on a global shortage of semiconductors are likely to be in focus.
Investors globally will watch updates on the troubled Chinese realty developer Evergrande, which is due to make an interest payment. Last week, fears on the possibility of the Evergrande situation hurting the global economy rattled world markets.
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To maintain the bullish momentum, the Bank Nifty index will need to catch up. The midcap basket is showing signs of underperformance compared to the headline index. A failure to surpass the previous highs decisively will be a sign of weakness for the broader markets, according to Samco.
The brokerage sees immediate support for Nifty at 17,600.
Here are the key factors and events that are likely to influence Dalal Street in the week starting September 27:
Foreign institutional investors (FII) net purchased Indian equities worth Rs 2,249 crore ($306.4 million) last week, according to exchange data.
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Official data on eight core sectors -- collectively known as infrastructure data -- for the month of August is due on Thursday.
Private PMI data on manufacturing in the country will be released on Friday.
Evergrande, the world's most indebted property developer, missed a deadline to pay $83 million in bond interest to holders last week. It is running out of cash, and owes funds to staff, contractors, suppliers, banks and buyers of investment products. Evergrande now has to pay $46 million on September 29.
Evergrande's electric car unit has warned it faces an uncertain future unless it is rescued with a cash injection -- a warning sign that the crisis is spreading to the group's other businesses.
IPO market buzz
Aditya Birla Sun AMC's IPO, estimated at Rs 2,768 crore, will open for subscription on Wednesday, September 29, and close on Friday. Shares will be available for bidding in multiples of 20 in a price band of Rs 695-712.
|Security Name||Ex Date||Purpose||Record Date|
|BHARTI AIRTEL LTD.||27-Sep-21||Right Issue of Equity Shares||28-Sep-21|
|COSMO FILMS LTD.||27-Sep-21||Interim Dividend - Rs. - 25.0000||28-Sep-21|
|Galactico Corporate Services Ltd||27-Sep-21||Bonus issue 1:1||28-Sep-21|
|INDO BORAX & CHEMICALS LTD.-$||27-Sep-21||Stock Split From Rs.10/- to Rs.1/-||28-Sep-21|
|Bajaj Healthcare Ltd||28-Sep-21||Final Dividend - Rs. - 0.5000||29-Sep-21|
|Bajaj Healthcare Ltd||28-Sep-21||Special Dividend - Rs. - 0.5000||29-Sep-21|
|Bajaj Healthcare Ltd||28-Sep-21||Stock Split From Rs.10/- to Rs.5/-||29-Sep-21|
|BAJAJ HOLDINGS & INVESTMENT LTD.||28-Sep-21||Interim Dividend - Rs. - 90.0000||29-Sep-21|
|ECLERX SERVICES LTD.||29-Sep-21||Buy Back of Shares||30-Sep-21|
|G. K. P. Printing & Packaging Ltd||29-Sep-21||Bonus issue 1:1||30-Sep-21|
|CL Educate Ltd||30-Sep-21||Stock Split From Rs.10/- to Rs.5/-||01-Oct-21|
|Universal Autofoundry Ltd||30-Sep-21||Final Dividend - Rs. - 0.5000||01-Oct-21|