During the previous week, the BSE index saw a decline of 373.99 points, equivalent to 0.57 percent, while the Nifty index declined 118.15 points, or 0.60 percent. The Indian stock market faced a week of instability due to unfavorable factors both internationally and domestically, accompanied by a shift towards safer assets by investors like the USD . Discouraging figures in domestic industrial production, negative wholesale inflation, and higher CPI inflation, all of which added to the overall market volatility.
"Macroeconomic indicators, trends in global stock markets and FII activities will be pivotal in shaping market trends in the coming days," Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, said.
Events that are likely to have an impact when markets reopen this week:
Market Last Week
Last week, the BSE benchmark fell by 373.99 points or 0.57 percent and NSE Nifty fell by 118.15 points.
The Sensex on Friday falls 281.10 points to end the day at 64,869.92 and the Nifty was at 19,282.35, down by 82.90 points.
IPO
In the upcoming week, the stock market is anticipating the launch of two initial public offerings (IPOs) Vishnu Prakash R Punglia IPO is set to open 24 August and will conclude on Monday, 28 August. The IPO of Aeroflex Industries Limited is also scheduled to begin on August 22, and will wrap up on August 24.
Listing
There are new listings to watch out for the next week.
TVS Supply Chain Solutions: Shares of TVS Supply Chain Solutions are slated to be listed on both BSE and NSE on Wednesday, 23 August.
Shelter Pharma: The listing of Shelter Pharma shares is planned for Wednesday, 23 August, on the BSE SME platform.
FII
The market's performance on Monday will significantly hinge upon the actions of Foreign Institutional Investors (FIIs).
In the previous trading session, foreign institutional investors acted as net sellers, divesting Indian equities valued at Rs 266.98 crore. Meanwhile, domestic institutional investors (DIIs) assumed the role of net buyers, accumulating Indian equities worth Rs 339.18 crore.
Global Cues
Indian indices encountered a week of vulnerability due to adverse global and domestic cues, accompanied by a shift towards safer assets by investors like the USD. Discouraging domestic industrial production, negative wholesale inflation, and elevated CPI inflation contributed to market volatility.
"Additional strains emerged from stronger-than-expected US retail sales data; adding to Fed rate hike fears, concerns about US bank rating downgrades, and a sudden Chinese central bank rate cut hindered recovery and sustained selling pressure. Escalating US bond yields are predicted to restrict foreign investments in India, further impacting market dynamics," Vinod Nair, Head of Research at Geojit Financial Services, said.
Oil Price
In the previous trading session, oil prices experienced an increase of approximately one percent. This rise was attributed to indications of a slowdown in US oil production. However, both major crude benchmarks also marked the end of their longest 8-week rally in 2023 due to growing concerns regarding the expansion of global demand.
The West Texas Intermediate (WTI) crude futures saw a gain of 86 cents, equivalent to 1.1 percent, closing at $81.25 per barrel. Meanwhile, Brent crude futures rose 68 cents, or 0.8 percent, reaching a settlement price of $84.80 per barrel.
On Friday, both benchmark crude prices surged upwards. This movement was influenced by industry data revealing that the count of oil and natural gas rigs in the United States, which serves as an early indicator of forthcoming production levels, had decreased for the sixth consecutive week.
