August 19th 2024.
As the earnings season comes to an end, experts predict that the stock markets will be influenced by both international trends and the trading activity of foreign investors this week.
One of the major highlights of the week will be the release of the US FOMC minutes, according to analysts. This week, there are not many significant developments on both the macro and micro fronts, as the Q1 earnings season has concluded. However, important global economic data, such as Japan's inflation numbers and the minutes from the US FOMC meeting, will be closely monitored. The uncertain geopolitical situation remains a key concern for the market in the near term, as stated by Santosh Meena, Head of Research at Swastika Investmart Ltd.
In addition to this, traders will also keep a close eye on institutional flows and the movement of crude oil prices, as mentioned by Meena. The global market saw a surge on Friday, as fears of a recession in the US eased.
According to Prashanth Tapse, Senior VP at Mehta Equities Ltd, positive US economic data, including cooling inflation and strong retail sales, helped dismiss recession fears. In addition, talks of a possible interest rate cut by the US Fed in the near future contributed to a significant rally in global equities, including India. This was reflected in the 1.68 per cent jump in the 30-share BSE benchmark and the 1.65 per cent increase in the NSE Nifty on Friday.
Looking ahead, the market's direction will largely depend on the release of the FOMC meeting minutes, as well as US existing and new home sales data, according to Palka Arora Chopra, Director at Master Capital Services Ltd. Last week, the BSE benchmark saw a 0.91 per cent jump, while the Nifty climbed 0.71 per cent.
Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd, stated that all eyes this week will be on the US Fed meeting minutes. He also believes that the market will likely consolidate within a broader range and be guided by global factors. Overall, experts predict a positive outlook for the market this week.
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