Covid updates, FPI inflows, macro data among key factors that may guide D-St this week
Trend in global stock markets, progress of monsoon, the movement of rupee against the dollar and crude oil prices will dictate the trend on the bourse
Bulls continued a splendid run on Dalal Street for yet another week with the benchmark equity indices BSE Sensex and NSE Nifty scaling new record highs as investors remained optimistic about the present growth momentum. Robust economic indicators and strong company results in Q1FY22 further supported the market. The BSE Sensex surged 1159.57 points or 2.14% to 55,437.29 for the week ended August 13. Likewise, the Nifty index added 290.90 points or 1.79% to 16,529.10. Going ahead, the trend in global stock markets, June quarter results, progress of monsoon, the movement of rupee against the dollar and crude oil prices will dictate the trend on the bourses in the near term. Investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will be watched.
WPI Inflation
On the macro front, Wholesale price index (WPI) inflation for July 2021 is due on 16 August 2021. Wholesale prices in India rose by 12.07% year-on-year in June 2021, below the market consensus of a 12.23% rise. On the same day, the Balance of Trade is also going to release. India recorded a trade deficit of $11230 million in July of 2021, preliminary estimates showed.
Forex Data
Market men will be also be eyeing the Foreign Exchange Reserves data to be announced on August 20. Foreign Exchange Reserves in India increased to $620580 million in July 30 from $611150 million in the previous week.
Covid update
On the coronavirus front, investors would continuously watch out government’s course of action along with progress on vaccination drive. Besides, as new Covid cases have seen a considerable decline, all eyes would be on state governments for further easing of the restrictions.
Global cues
Globally, the trend of rise in Covid cases on account of the delta variant, especially in the UK and Asia. Overseas, China will announce retail sales data for July on 16 August 2021. US FOMC minutes are due on 18 August 2021 and it will also announce retail sales data for July on 17 August 2021. US traders will also be eyeing NY Empire State Manufacturing Index, Foreign Bond Investment on August 16, followed by Redbook, Industrial Production on August 17, FOMC Minutes on August 18, Initial Jobless Claims, Philadelphia Fed Manufacturing Index on August 19 and finally Baker Hughes Oil Rig Count on August 20.