IPO, inflation, US Fed, BoJ policy decisions among key factors that will guide markets next week

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Trends in global markets, the progress of monsoon, the movement of rupee against the dollar and crude oil prices, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will guide the domestic equity market next week.

Here are key factors that will steer the market next week:

Covid-19 updates

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. Globally, the trend of rise in Covid cases on account of the delta variant, especially in UK and Asia.

Inflation data and FII inflows

In the next week, on the economy front, investors will be eyeing the consumer price index inflation data for agricultural labourers/ rural labourers, which is slated to be released on September 20. Meanwhile, the trend in investment by foreign institutional investors and the movement of rupee against the dollar will also be closely watched by the market participants.

Forex data

Market will be also be eyeing the foreign exchange reserves data to be announced on September 24. Foreign exchange reserves in India increased to $6,42,453 million in September 3 from $6,33,558 million in the previous week. On the same day, Deposit Growth and Bank Loan Growth also going to release.

Primary market

Apart from the capital market, there will be buzz from the primary market too, as one important IPOs lined up. Paras Defence and Space Technologies which is engaged in designing, developing, manufacturing and testing of a wide range of defence and space engineering products and solutions will be entering the primary market to raise up to Rs 171 crore in a price band of Rs 165-175 per share.

Global cues

On the global front, traders will first be eyeing NAHB Housing Market Index, UN General Assembly on September 20 followed by Redbook on September 21, Existing Home Sales, FOMC Economic Projections, Fed Interest Rate Decision on September 22, Initial Jobless Claims, Markit Composite PMI Flash on September 23 and finally Baker Hughes Oil Rig Count on September 24. China will also announce Loan Prime Rate for 1 year and 5 years on 22 September 2021. The Bank of Japan (BoJ) will announce its interest rate decision on 22 September 2021. Japan will declare inflation data for August on September 24. The Fed will begin its two-day policy meeting on September 21, where investors will be looking for clues about the central bank’s bond-buying program. The US Federal Reserve (Fed) will announce its interest rate decision after its two-day policy meeting on 22 September 2021.