IIP, inflation, rupee to drive equity markets this week
"The lingering concerns seems to be around crude oil prices, global interest rates and the ongoing global developments on the trade front. Given the status quo, we expect short term rates to ease while long term yields may trade range bound.
Macroeconomic data, movement of the rupee and trend in global crude oil prices would be crucial for the stock markets this week, say experts.
After back-to-back hikes since June, the Reserve Bank of India (RBI) kept interest rates unchanged Friday, surprising markets that had expected a rate hike to support the tumbling rupee and combat inflationary pressures from high oil prices.
"The equity market outlook has taken a beating given degradation in the quality of debt, redemption and heightened risk averseness by investors.
"Trend is likely to be negative at least in the near-term till the financial market stabilises. Key data like bond yield, INR, oil prices, liquidity and equity valuation has to normalise which may take some more time," said Vinod Nair, Head of Research, Geojit Financial Services.
"The lingering concerns seems to be around crude oil prices, global interest rates and the ongoing global developments on the trade front. Given the status quo, we expect short term rates to ease while long term yields may trade range bound.
"The macro needs monitoring and INR and crude oil prices could be leading the way for markets going forward," said Lakshmi Iyer, CIO (Debt) and Head of Products, Kotak Mahindra Asset Management Company.
Stock markets took a beating last week over rupee woes and crude oil prices. The BSE Sensex lost a whopping 1,850.15 points over the week to close at 34,376.99 on Friday.
"On economic data front, this week the International Monetary Fund will present its latest World Economic Outlook as it opens its annual meeting with the World Bank in Bali, Indonesia. US September inflation data is due on Thursday.
"In India, data like IIP for August and CPI for September month will be announced this Friday," said V K Sharma, Head PCG and Capital Market Strategy, HDFC Securities.
Watch Zee Business video here:
"Markets have witnessed selling across the board. Even the good quality stocks were battered in line with general markets.
"However, the current fall was in isolation with global developed markets which give a ray of hope that soon a bounce will emerge as valuations have corrected a lot across the board. We think markets will calm down once corporate results start pouring in and given the oversold state of market, sharp rallies can be expected," said Jimeet Modi, Founder and CEO, SAMCO Securities and StockNote.
The Indian rupee crashed below the 74-level against the US dollar for the first time ever Friday.
"Rupee was caught off guard and weakened beyond 74, after RBI surprised markets by keeping rates unchanged. Given the rising oil and trade tensions, traders will bet on exports going up, to curb further weakening in the currency," said Anand James, Chief Market Strategist, Geojit Financial Services.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Rs 55 lakh Home Loan vs Rs 55 lakh SIP investment: Which can be faster route to arrange money for Rs 61 lakh home? Know here
Top 7 Flexi Cap Mutual Funds With up to 52% SIP Return in 1 Year: Rs 20,000 monthly SIP investment in No. 1 fund has generated Rs 3.02 lakh; know about others too
02:51 PM IST