Factors To Influence The Equity Market This Week

Indian benchmark indices surged last week, with the BSE Sensex gaining 320 points to close at 67,839 and the Nifty50 rising by 89 points to reach 20,192, forming a bullish candlestick pattern with a minor upper shadow on the daily charts. Nifty crossed the 20,200 mark on September 15, but failed to sustain above it and eventually dragged down to 20,192.

Experts believe that if the current momentum continues, Nifty50 may reach 20,200-20,300-20500, with immediate supports at 20,000. However, there are some macroeconomic data that need to be addressed, as they may significantly affect the market”s momentum.

Primarily, the week has been cut short to four trading days as the market will remain shut on Tuesday due to the Ganesh Chaturthi Festival. Other factors that may impact the market include:

• US S&P Global manufacturing and services PMI, initial jobless claims, building permits, crude oil inventories, existing home sales, FOMC policy outcomes, UK and Eurozone inflation, among others.
• The Federal Open Market Committee”s (FOMC) monetary policy will be released on September 20, while the Bank of England and Bank of Japan have also convened meetings to fix interest rates.
• US market performance is another concern for domestic bourses, as Wall Street indices dipped sharply last week.
• Global macros include US initial jobless claims data, S&P Global Manufacturing & Services data, Composite PMIs, the UK”s CPI, S&P Global CIPS UK, and manufacturing PMIs.
• Eurozone will also announce its CPI data this week. S&P Global Eurozone Manufacturing PMI, S&P Global Eurozone Services PMI data will also be published.
• Rupee has snapped its gains and lost 0.3% last week against last week. In this context, experts expect RBI intervention in forex markets.

As far as corporate actions are concerned, there are much more to come. AGMs of Zen Technologies, Five Star Business, JBM Auto, Sterling Tools, Nykaa, AIA Engineering, Gateway Distriparks, GokalDas Exports, BLS International, MOIL, Shriram Finance, SunTV Network, Welspun Corp, Dr Reddy”s Laboratories, Rolex Rings, and HUDCO among others.

• L&T buyback opens on September 18, the last date to be eligible for dividends for Infibeam Avenue Zaggle Prepaid Ocean Services, Samhi Hotels and Yatra Online s, Metroglobal, and Pradeep Phosphates.
• Last date to buy shares to be eligible for dividends of SAIL, Sunteck Realty, Genus Power, Harsha Engineering, Olectra Greentech, Mrs. Bectors Food, Finolex Cables, KNR Constructions, Jindal Poly Films, and National Fertilizers among others, will also be falling during the week, according to a report by Economic Times.
• There are three IPOs such as Zaggle Prepaid Ocean Services, Samhi Hotels, and Yatra Online ongoing, and Sai Silks Kala mandir will launch their IPO on Wednesday. The price band has been fixed at 210-222.
• FII/DII actions can also have major impacts on the market.

On market foreign institutional investors (FII) and domestic institutional investors (DIIs) were net buyers, investing Rs 164.42 crore and Rs 1,938.57 crore respectively. MCX October Gold futures ended at Rs 59,410 per 10 gram, up Rs 36 or 0.06% over Thursday closing price, while December Silver Futures settled at Rs 75,099, down by Rs 583 or 0.77%.

Rising crude price is a headwind for the Indian economy, as the country imports more than 80% of its domestic need. Benchmark US crude oil for October delivery rose 61 cents to $90.77 a barrel Friday, while Brent crude for November delivery rose 23 cents to $93.93 a barrel, Reuters reported. This is likely to affect Indian bourses this week.