The stock market is expected to remain bullish this week. Factors such as domestic and global economic data, automobile sales data and market watchdog SEBI meeting will decide the market movement.
Siddharth Khemka, Head of Wealth Management Research at Motilal Oswal Financial Services, said, “Positive market momentum is expected to continue due to frontline actions.
This week, the market will remain closed on Gandhi Jayanti on October 2. Last week, Sensex rose 1,027 points to close at 85,571 and Nifty rose 388 points to close at 26,175.
Market movement will be determined by five factors:
1. Powell’s speech and economic data: Global investors will be keeping a close eye on US Federal Reserve Chairman Jerome Powell’s speech on September 30. This speech is considered important after the pension rate was cut by 0.50% at the September meeting.
Apart from this, investors will also keep an eye on job openings, unemployment rate, non-farm payrolls, vehicle sales and factory orders data. America is the largest economy, which is why every major decision made impacts the economies of the world.
2. Keep an eye on crude oil prices: Tension has increased in the Middle East due to the death of Hezbollah leader Hassan Nasrallah. In such a situation, investors will also keep an eye on oil prices. Brent crude futures fell 3.66% last week to $71.95 a barrel.
Crude is currently trading below all major moving averages. At the same time, crude futures have remained below $80 per barrel closing since the last week of July. Low oil prices are beneficial for oil-importing countries like India.
Israel carried out an airstrike on Hezbollah headquarters around 9:30 p.m. Indian time on Friday evening.
3. National economic data: Investors’ attention will focus on the budget deficit and infrastructure production data for August, which will be released on September 30. Current account and external debt data for the June 2024 quarter will also be released on September 30.
Apart from this, the final manufacturing and services PMI data for September will be released on October 1 and 4. Bank loan and deposit growth figures will be released on October 4. Data on foreign exchange reserves will also be released on the same day.
4. Publication of automobile sales data: Investors will also keep an eye on auto sales data for September. Auto stocks like Maruti Suzuki India, Tata Motors, Ashok Leyland, Hero MotoCorp, Eicher Motors, TVS Motor, Bajaj Auto, Mahindra & Mahindra will be in focus.
5. Domestic and foreign investors: Investors will also keep an eye on domestic and foreign investors. Foreign institutional investors i.e. FIIs sold shares worth Rs 1,209 crore on Friday (September 27) alone. Domestic investors, i.e. DIIs, purchased shares worth Rs 6,886 crore.
FIIs sold stocks worth Rs 3,933 crore in the cash segment last week, but so far in September, they have purchased stocks worth Rs 22,404 crore. While for the week, DIIs made purchases worth Rs 15,962 crore. The total investment for the month is Rs 24,212 crore.
6. Global Market: Investors will also keep an eye on developments in global markets next week. On Friday, the Dow Jones US market index closed at 42,313 points, up 0.33%. The Nasdaq fell 0.39% and closed at 18,119.
Asian markets also rose on Friday. In the Asian market, Japan’s Nikkei index rose 2.32% and Hong Kong’s Hang Seng index rose 3.55%. China’s Shanghai Composite Index closed up 2.88%.
Last week, Sensex and Nifty hit an all-time high
Sensex touched an all-time high of 85,978 and Nifty 26,277 on September 27. However, a decline was recorded after the trading session. Sensex closed 264 points lower at 85,571 and Nifty closed 37 points lower at 26,178.