Market Week Ahead: The Sensex crossed the 60,000 mark last week and the Nifty 50 crossed the 17,900 level before retreating on profit-booking. Global cues rose as investors re-evaluated the monetary policy outlook. In the coming trading sessions from September 12 to 16, sharp remarks from the US Fed, coupled with expectations of a rate hike of 75 basis points by the European Central Bank (ECB), was instrumental in impacting markets globally, including in domestic equities. may play a role. Macroeconomic data on inflation, manufacturing and industrial output could also influence sentiment.
Last week on Friday, the Sensex closed 104.92 points or 0.18% higher at 59,793.14. The 30-point benchmark made a strong start to climb to an intraday high of 60,119.80, however, corrected amid profit booking after crossing the 60,000-mark. Meanwhile, Nifty 50 edged higher by 17,833.35 to cross 17,925.95 intraday high with a gain of 34.60 points or 0.19%. banking and IT stocks outperformed, while capital goods and consumer durables shares were backward.
However, the market cap of equity firms listed on BSE remained approx. 283.04 lakh crore raising its new all-time high. Last day, market cap was around 282.67 lakh crore.
Overall, between September 5 and September 9, both the Sensex and Nifty 50 have gained more than one per cent each.
Notably, on Friday, the rupee, however, edged higher by 12 paise at 9.57 against the US dollar on the back of easing in the greenback, positive sentiments in domestic equities and continued foreign fund inflows. Last week, the dollar saw some downside ahead of US inflation data, which would give better clarity on the Fed’s scathing comments.
This month till September 9, FPIs have pumped 5,593 crore in the equity market, as per NSDL data.
Furthermore, in the week ended September 2, the country’s foreign exchange reserves stood at $553.105 billion – a decline of $7.941 billion from the previous week—the lowest since October 9, 2020.
What to expect from the markets this week?
Vinod Nair, Head of Research, Geojit Financial Services, said, “Bulls dominate domestic markets as indices move in line with developments in global markets. Global indices edged up as investors reevaluated monetary policy outlook. Chair and by ECB 75 bps rate hike.”
Nair also said, “While the energy crisis in Europe continues to haunt investors, the renewed efforts by Chinese policymakers to bolster their economy bodes well for Chinese markets. In an effort to stabilize the fall in oil prices.” , OPEC+ opted to cut output given faltering global growth outlook. Domestic investors held an upbeat outlook, firming economic data, continued FII inflows, and increased corporate activity. Banking and banking during the week Consumption stocks remained at the top.”
Market direction in the coming week will be determined by cues from global markets as well as key macroeconomic data points such as inflation and manufacturing and industrial production data to be released next week. Domestic retail inflation is expected to rise from 6.71% in July to 6.9% in August.
India will announce its CPI inflation data for August and IIP data for July on 12 September, while WPI inflation data will be presented on 14 September.
Amol Athawale, Vice President, Technical Research, Kotak Securities Ltd. said, “We need to focus more on mid-cap and small-cap stocks. In the coming week, we are expecting gains in financial stocks and better performance in technology stocks. Huh.”
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