Market Outlook this week: The direction of the market will depend on key macroeconomic data including GDP data to be released this week, settlement of monthly deals in the futures and options segment (monthly F&O expiry) and global trends. Analysts expressed this opinion on Sunday. They believe that the comments of US Federal Reserve Chief Jerome Powell can also have an impact on the market.
Experts said that due to the monthly settlement of deals in the future and option segment this week, traders may see some fluctuations in the next sessions. Last week, the BSE Sensex rose by 649.37 points or 0.80 percent. NSE Nifty also rose by 282 points or 1.1 percent.
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What do experts say
Siddharth Khemka, Head of Retail Research, Motilal Oswal Financial Services Ltd, said that this week, we anticipate that the market will see a gradual uptrend with stock-specific activities. Investors will keep an eye on the settlement of monthly deals in futures and options trading as well as global trends. He said that the market will react to the comments of the head of the US Federal Reserve at the Jackson Hole Symposium on Tuesday. Powell indicated on Friday that the central bank would cut its interest rate at the September meeting. Powell laid the ground for future interest rate cuts in his address. He said that the time has come to adjust the policy.
Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS, said that the market is expecting an interest rate cut during the next meeting of the Federal Reserve in September. Amid weak jobs data, there are indications that the pace of policy rate cuts may accelerate. However, Powell believes that the US economy is very unlikely to go into recession in the near future. This means that the interest rate cut by the US Central Bank Federal Reserve will be in line with the consensus and the chances of further rate cuts may be low. US markets rose after the address of the Federal Reserve head and closed with gains on Friday.
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Vinod Nair, Research Head, Geojit Financial Services, said that the positive US economic data has continued to push the Indian market higher this week. The US data has reduced the fear of a US recession. Apart from this, positive global sentiment over ceasefire talks between Israel and Hamas and a fall in crude oil prices contributed to the rise. Foreign institutional investors (FIIs) withdrew Rs 1,608.89 crore from the stock market. However, domestic institutional investors continued their buying and bought shares worth Rs 13,020.29 crore last week.
According to Ajit Mishra, Senior Vice President (Research) of Religare Broking, domestically, investors will keep an eye on macroeconomic data including GDP and infrastructure production. GDP data for the first quarter of the current financial year will be released on August 30. Apart from this, infrastructure sector production data for July will also be released.