In the upcoming week, equity market momentum will be influenced by macroeconomic data releases, global trends, and foreign investor activity. Market dynamics will also be focused by factors such as developments in China's real estate, fluctuations in the dollar index, and US bond yields.
Additionally, the market will closely watch key data releases including S&P Global services PMI, US jobless data, and domestic PMI for the services sector.
"On the global front, problems in China's real estate, fluctuations in the dollar index, and the US bond yields will play a pivotal role in shaping market dynamics throughout the week. Apart from that, macroeconomic data like the S&P Global services PMI, US jobless data will provide insights into the FED's monetary policy outlook," said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
Market Last Week
Markets ended a five-week losing streak and gained nearly a per cent last week, largely propelled by a strong Friday rebound.
On Friday, the 30-share BSE Sensex was up 519.13 points or 0.80 percent to end the day at 65,350.54. The NSE Nifty went up by 181.50 points or 0.94 percent to end at the day at 19,435.30. Nifty Bank gained 446.95 points or 1.02 percent at 44,436.10.
IPO
In the upcoming week, the stock market is anticipating the launch of four initial public offerings (IPOs).
In the primary market, Ratnaveer Precision Engineering, a manufacturer of stainless steel-based products, will launch its public issue from September 4th to 6th, with a price range of Rs 93 to Rs 98 per share. Meanwhile, Jupiter Life Line Hospitals, the largest among the three IPOs, is scheduled for September 6th to 8th, with shares priced between Rs 695 and Rs 735 per share.
EMS Limited's mainboard IPO is scheduled to accept subscriptions from Friday, September 8, to Tuesday, September 12.
In the SME segment, Mumbai's Kahan Packaging, will open its IPO worth Rs 5.76 crore for subscription from September 6th to 8th. Additionally, next week will witness three new listings; Vishnu Prakash R Punglia shares will get listed on stock exchanges on Tuesday, September 5th, Sahaj Fashions making its debut on September 6th, Mono Pharmacare on September 7th, and CPS Shapers on September 8th, according to the IPO schedule.
Domestic economic data points
After manufacturing PMI data, on September 5th, the services PMI data for August is set to be announced. In addition to that, the composite PMI numbers for August will also be announced the same day.
On the macro front, some of the key factors that will be in focus in the coming days are India's S&P global services PMI, Euro zone S&P global composite PMI, UK services PMI, Euro Zone Q2 GDP, US factory orders, S&P Global US services PMI, crude oil prices, initial jobless claims, FII (Foreign Institutional Investors) and DII (Domestic Institutional Investors) activities will drive the market," Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said
FII Flow
Foreign portfolio investors (FPIs) shifted to net selling in August, marking a contrast to the previous three months of consistent buying, as the performance on D-Street remained muted. FPIs purchased Indian equities worth Rs 12,262 crore and made a total investment of Rs 18,338 crore, including debt, hybrid, debt-VRR, and equities, as reported by the National Securities Depository Ltd (NSDL) data as of August 31st.
"While foreign investors have already been net buyers of local shares in the past five sessions, the recent macroeconomic numbers like strong Q1 GDP growth, robust August GST collections, and upbeat PMI data for last month should bolster their confidence in local markets," said Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd.
Crude oil and Rupee
The movement of crude oil and trend in rupee against the US dollar will also influence trading patterns in the market.
Oil prices were trading higher on Friday morning amid expectation that OPEC+ group oil producers will extend the output cuts to the end of the year. Brent crude futures for October gained 7 cents at $86.90 per barrel and US West Texas Intermediate crude jumped to $83.70 per barrel with a gain of 7 cents.
