September 30th 2024.
As we enter a new week, experts are predicting that the equity market will be largely influenced by global trends, trading activity of foreign investors, and domestic macroeconomic data announcements. With Wednesday being a holiday for Mahatma Gandhi Jayanti, the market will only be active for a few days this week.
One of the key factors to watch out for will be the Foreign Institutional Investors (FIIs) and their investment flow into India. September saw the highest FII inflow into Indian equities this year, making it crucial to monitor their movements. Along with this, the market will also be impacted by commodity prices, the US dollar index, and key macroeconomic data from the US.
Santosh Meena, Head of Research at Swastika Investmart Ltd, also believes that geopolitical developments will continue to play a significant role on the global stage, affecting the market's direction. On the domestic front, upcoming monthly auto sales data and quarterly updates from companies will have an impact on stock-specific movements.
Among the macroeconomic numbers, the PMI data for the manufacturing and services sectors will be closely monitored as it will influence trading in the markets. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, expects the market to continue its positive momentum driven by frontline stocks.
Last week, the BSE benchmark saw a jump of 1,027.54 points while the Nifty surged 388 points. The BSE Sensex even hit a new record intra-day peak of 85,978.25 on Friday, while the NSE Nifty hit an all-time intra-day high of 26,277.35 on the same day.
Moving forward, global factors will play a pivotal role in shaping the market as there are no major domestic events scheduled. Ajit Mishra, SVP of Research at Religare Broking Ltd, believes that auto sales data, which will be released from October 1, will be a key focus along with important economic indicators such as the HSBC India Manufacturing PMI and HSBC India Services PMI. Mishra also highlights the impact of foreign fund flows and crude oil prices on market sentiment.
Vinod Nair, Head of Research at Geojit Financial Services, believes that investors will be closely watching the Q2 earnings with hopes of an improvement in the earnings outlook. The market responded positively to the Fed's rate cut and stable economic data points, resulting in increased foreign inflows and momentum in domestic markets. Additionally, China's economic stimulus announcement has boosted investor confidence, leading to notable positive momentum in global markets, particularly in Asian indices.
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