New Delhi: The stock market movement in this week will depend upon factors including US Federal Reserve’s decision on rate cut, analysts said. The investors will also track the buying and selling activities of foreign investors, global trends and macroeconomic data announcements, they added.
Experts were of the view that there is a possibility of US Federal Reserve announcing rate cut this week, which may trigger optimism in the domestic equity market. Notably, the equity markets would observe a holiday on Wednesday for Ganesh Chaturthi festival.
“Positive global cues are likely to provide some support, as US markets rallied sharply and the dollar index weakened after Federal Reserve Chair Jerome Powell hinted at potential rate cuts in his Jackson Hole Symposium speech.
“Another key factor to watch will be the August 27 deadline regarding the US plan to impose an additional 25 per cent tariff on Indian exports. With clarity still lacking, FII participation may remain subdued. Alongside this, macroeconomic data from the US, China, and India will also be closely tracked,” Santosh Meena, Head of Research at Swastika Investmart, was quoted by PTI as saying.
The US stock markets settled on a strong note higher on Friday. The Dow Jones Industrial Average jumped 1.89 per cent, the Nasdaq Composite appreciated 1.88 per cent and the S&P 500 gained 1.52 per cent.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, is of the view that US Federal Reserve chief Jerome Powell’s Jackson Hole speech indicates a rate cut in September.
Meanwhile, another expert, Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said, that the domestic equities are expected to remain supported by optimism around GST 2.0 reforms and domestic macro strength.
“Globally, clarity on US tariff actions against India and upcoming GDP data from both India and the US will shape investor sentiment,” Khemka said.
Ajit Mishra, SVP, Research, Religare Broking Ltd, is of the opinion that the stock market investors will keep a close watch on domestic data releases, including the IIP and GDP figures, “which will serve as critical indicators of economic momentum.”