New Delhi, 13 September (Language) Events like the India-China border tension and macroeconomic data will decide the direction of the stock markets this week. Apart from this, investors will also keep an eye on global indicators. Analysts have expressed this opinion. Last week, the 30-share Sensex of the BSE and the Nifty of the National Stock Exchange registered a healthy recovery.
In the previous week, up to 2.5 percent of the ‘correction’ came from them. The Sensex gained 497.37 points or 1.30 percent in the previous week. The Nifty gained 130.60 points or 1.15 percent. The market recorded good gains due to a strong rise in Reliance Industries shares. However, uncertainty over the recovery in the economy, rising cases of COVID-19 and India-China tensions are impacting the market sentiment.
Vinod Nair, head of research, Geojit Financial Services, said,
“Investors should be prepared for further sluggish progress as official statements do not come after high-level talks to end border tensions.”
This uncertainty will affect market sentiment in the short term. ”A five-point plan was agreed between India and China last week to calm border tensions in eastern Ladakh. Nair said that due to the lack of indicators at the domestic level, investors will keep an eye on global developments. “Many small-cap companies are announcing their quarterly results. This may lead to stock-based movements in the market.
”Analysts said the US central bank’s decision on interest rates and inflation data could provide some direction to the market. The figures for both retail and wholesale inflation will be released on Monday. Inflation based on the Consumer Price Index rose to 6.93 percent in July. Religare Broking Ltd.
Ajit Mishra, vice-president of research, said, “Investors will first respond to industrial production (IIP) data in the coming sessions. Also, he will keep an eye on the wholesale and retail inflation figures. Apart from this, the market will also take cues from the global trend and the upcoming FOMC meeting. ”Industrial production declined by 10.4 percent in July. Industrial production has come down mainly from poor performance in manufacturing, mining and power sectors. Industrial production figures were released on Saturday. The market is also volatile due to increase in cases of COVID-19.
However, the death toll from this epidemic has come down. There are 94,372 new cases of COVID-19 infection in the country. Now the infection figure has crossed 47 lakhs. According to Health Ministry data, 37,02,595 people have been cured of the disease so far. At the national level, the epidemic recovery rate has been 77.88 percent. So far 78,586 people have died due to this epidemic.
Siddharth Khemka, head of retail research, Motilal Oswal Financial Services, said, “Investors will be watching the policy meeting of the US Federal Reserve this week.” Apart from this, he will also keep an eye on COVID vaccine news and global indicators.
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