Indian stock markets are set for a data-heavy week, with investor sentiment expected to be guided by global trends, domestic inflation numbers, and foreign investment flows. Analysts anticipate a cautiously optimistic start, with focus on consumption-driven and capital expenditure-linked sectors.
Key Data Points to Watch
On the domestic front, August inflation data due on September 12 will be closely tracked for signals on price stability and monetary policy. Globally, US consumer inflation, jobless claims, and consumer sentiment figures will shape expectations for the Federal Reserve’s upcoming policy meeting on September 16-17.
The European Central Bank’s interest rate decision and Japan’s second-quarter GDP numbers will also add to global market cues. Any progress on an India-US trade deal may further support investor confidence.
Market Performance Last Week
Benchmark indices ended last week with strong gains, supported by robust macroeconomic data and recent policy reforms.
- BSE Sensex: up 901 points (1.12%)
- NSE Nifty: up 314 points (1.28%)
On Friday, markets saw a volatile session, with the Sensex closing almost flat at 80,710.76 (down 7.25 points), while the Nifty edged up 6.70 points to 24,741.
Sectoral Trends
Auto and energy stocks extended gains, buoyed by demand revival expectations and favorable global cues. However, IT and FMCG counters faced selling pressure. Analysts note that the recent GST rate cut announcement could act as a stimulus, potentially driving rallies in select sectors despite ongoing tariff concerns.
Other Market Drivers
The direction of crude oil prices and the rupee-dollar exchange rate will remain key factors in shaping near-term sentiment.
“Investors should brace for a busy week. Domestic inflation and US data will be critical, while movement in crude and currency markets will keep volatility high,” said Siddhartha Khemka, head of research at Motilal Oswal Financial Services.
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