The stock market is expected to be bullish this week. Factors like domestic and global economic data, auto sales data, meeting of market watchdog SEBI will determine the market movement.
Siddharth Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services, said that the positive momentum in the market is expected to continue due to frontline stocks.
The market will be closed on Gandhi Jayanti this week on 2nd October. Last week, Sensex closed up 1027 points at 85,571 and Nifty up 388 points at 26,175.
Market movement will be determined by five factors:
1. Powell Speech and Economic Data: Global investors will be watching US Federal Reserve Chairman Jerome Powell's speech on September 30. The speech is considered significant after the 0.50% cut in the repo rate in the September meeting.
Apart from this, investors will also keep an eye on job openings, unemployment rate, non-farm payrolls, vehicle sales and factory order data. America is the largest economy, so every major decision made affects the world economy.
2. Monitor Crude Oil Prices: The death of Hezbollah leader Hassan Nasrallah has heightened tensions in the Middle East. In such a situation, investors will also keep an eye on oil prices. Brent crude futures fell 3.66% to $71.95 a barrel last week.
Crude is currently trading below all major moving averages. At the same time, crude futures have remained below the $80 per barrel mark on a closing basis since the last week of July. Low oil prices are beneficial for oil importing countries like India.
Israel launched an airstrike on the Hezbollah headquarters on Friday night at around 9:30 PM IST.
3. Domestic Economic Data: Investors' focus will be on the fiscal deficit and infrastructure output data for the month of August due out on September 30. Current account and external debt data for the June 2024 quarter will also be released on September 30.
Apart from this, the final manufacturing and services PMI data for September will be released on October 1 and October 4. Bank loan and deposit growth numbers will be announced on October 4. Data on foreign exchange reserves will also be released on the same day.
4. Auto sales data to be disclosed: Investors will also be watching auto sales data for the month of September. The focus will be on auto stocks like Maruti Suzuki India, Tata Motors, Ashok Leyland, Hero MotoCorp, Eicher Motors, TVS Motor, Bajaj Auto, Mahindra & Mahindra.
5. Domestic and Foreign Investors: Investors will also look at domestic and foreign investors. Foreign Institutional Investors ie FIIs on Friday (September 27) invested Rs. 1209 crore shares were sold. Domestic investors i.e. DIIs have invested Rs. 6886 crore worth of shares bought.
FIIs last week in cash segment Rs. 3,933 crore worth of shares sold, but in September so far Rs. 22,404 crore shares have been bought. While in the week DII Rs. 15,962 crore was purchased. Total investment for the month is Rs. 24,212 crores.
6. Global Market: Investors will also be watching how global markets perform next week. The US market's Dow Jones rose 0.33% to close at 42,313 on Friday. The Nasdaq closed down 0.39% at 18,119.
Asian markets also saw a jump on Friday. In Asian markets, Japan's Nikkei rose 2.32% and Hong Kong's Hang Seng index rose 3.55%. China's Shanghai Composite Index closed up 2.88%.
Sensex and Nifty made all-time highs last week On September 27, Sensex touched a record high of 85,978 and Nifty 26,277. However, a decline was seen after the day's trade. The Sensex closed down 264 points at 85,571 and the Nifty closed down 37 points at 26,178.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
