Market outlook: This week’s indexes will be impacted by global trends and FII trading activity

The first quarter results season is drawing to a conclusion, therefore this week’s trading activity by international investors and worldwide trends will influence local share markets, according to experts.

Market patterns will also be influenced by changes in Brent crude, the international standard for crude oil, and the value of the rupee in relation to the dollar.

According to Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd., “Macroeconomic indicators, trends in global stock markets, and FII activities will be pivotal in shaping market trends in the coming days.”

Several significant world events, including the US existing home sales, initial unemployment claims, and the Eurozone S&P global composite PMI, will have an impact on the market. Senior Vice President of Master Capital Services Ltd. Arvinder Singh Nanda remarked.

We anticipate both local and international markets to stay under pressure in light of Fed Chair Jerome Powell’s speech and other macroeconomic data scheduled for release this week. On Thursday, RBI will also make its meeting minutes public.

“However, sectoral rotation and action are anticipated to continue in the larger market. As Jio Financial Services is scheduled to IPO on Monday, index heavyweight Reliance would come under close scrutiny, according to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd.

According to a statement from the market, Jio Financial Services, the demerged financial services division of Reliance Industries, will list on stock exchanges on August 21.

The BSE index dropped 373.99 points or 0.57 percent last week, while the Nifty lost 118.15 points or 0.60 percent.

“Due to negative global and local indications and investor shifts towards safer assets like the USD, Indian indexes experienced a week of vulnerability. Market instability was a result of weak domestic industrial output, low wholesale inflation, and high CPI inflation.

“From stronger-than-expected US retail sales data, other stresses arose; escalating Fed rate rise expectations, worries about US bank rating downgrades, and concerns about a rapid rate drop by the Chinese central bank impeded recovery and maintained selling pressure. According to Vinod Nair, Head of Research at Geojit Financial Services, rising US bond rates are expected to limit foreign investment in India and have an additional negative influence on market dynamics.