INSUBCONTINENT EXCLUSIVE:
NEW DELHI: After a week that saw equity indices Sensex and Nifty end on a subdued note, the domestic equity market has a strong booster in
the form of a world-beating GDP growth print going into a new week.
While Sensex fell 45 points on Friday and Nifty inched up by 4 points,
they still gained around 1 per cent each on a weekly basis, thanks to a rise in select heavyweights from financial, IT and pharma sectors
A steep plunge in the rupee, negative global cues, global trade war worries and expiry of August series FO contracts continued to suppress
investor sentiment on Dalal Street
The rupee breached the 71 level, marking the biggest monthly decline in three years
In the week ahead, some of the same factors may keep the pressure, but there are also a few positions
Here are a few of them:
Strong macros promise some actionMacroeconomic data should be steering the equity market next week
compared with 5.6 per cent growth in the year-ago period and 7.7 per cent in March quarter
Fiscal deficit stood at Rs 5.40 lakh crore for April-July, which was 86.5 per cent of the Budgeted figure, compared with 92.4 per cent
around this time last year
impressive 6.6 per cent in July against 2.9 per cent in the year-ago period
An improvement in government finances is expected to bring some optimism to the market next week
Investors will also keep an eye on the Nikkei Manufacturing PMI and Nikkei Services PMI for August, which will be released next week
Trade front remains tenseOn the global trade front, the US is preparing to impose fresh tariffs on $200 billion worth of Chinese goods and
President Donald Trump is threatening to pull the US out of the World Trade Organisation
Talks to revamp the North American Free Trade Agreement (NAFTA) are in progress for four days now and Trump has expressed his intention of
moving ahead with Mexico even as talks with Canada continue
No respite likely for the rupee The rupee is on a free fall
After breaching the 71 level on Friday, the domestic currency has declined 3.3 per cent in August and nearly 10 per cent so far this year,
emerging as the worst-performing currency in Asia
Higher crude oil prices and sustained demand for the US dollar have been causing the rupee to fall
Investors will keenly observe how the rupee moves next week
While a fresh fall will be bad for the sentiment of the overall market, select IT and pharma stocks will take advantage of it
Monsoon performance below averageLatest data from the India Meteorological Department (IMD) showed a deficient monsoon in the country
Now it is the time of monsoon's retreat
September, but the withdrawal cannot be declared in haste
How monsoon fares in its last leg will be an important cue for market sentiment
Auto stocks to be in focusStocks of automakers will be in focus next week following their August sale numbers
Automakers, including Maruti Suzuki, Tata Motors and Mahindra Mahindra, released their sale numbers on Saturday
MM reported a 14 per cent increase in total sales at 48,324 units, while Tata Motors reported a 27 per cent increase in domestic sales at
Nifty technical charts indecisiveThe Nifty50 on Friday settled flat after briefly rising above the 11,700 level in morning trade,
suggesting indecisiveness among traders
12,000 mark is within striking distance
While key levels remain intact, we are betting on a broadening wedge pattern formed on the hourly charts to propel Nifty to the 11,800 level
US jobs numberUS jobs data for August will be released on Friday
US job growth declined in July
However, the rate of unemployment fell
kicked off with major economies.
