Macroeconomic data, FII inflows, auto sales among key factors that will guide markets next week
The Federal Reserve will start dialling back its ultra-low-rate policies this year as long as hiring continues to improve, Chair Jerome Powell said.
Global and domestic macroeconomic data, the 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 bourses in the near term. Investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will be watched. Here are key factors that will steer the market next week:
Macroeconomic data
On the macro front, infrastructure output data for July will be released on 31 August 2021. India’s gross domestic product (GDP) for the second quarter will be released on 31 August 2021. Markit Manufacturing PMI for August will be declared on 1 September 2021. Markit Services PMI for August will be declared on 3 September 2021.
Auto sales numbers
Auto stocks will be in focus as auto companies will start announcing monthly sales numbers for August starting from 1 September 2021. On the coronavirus front, investors would continuously watch out government’s course of action along with progress on the 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.
Covid update and global cues
Globally, the trend of rising Covid cases on account of the delta variant, especially in UK and Asia. Overseas, the China NBS Manufacturing PMI for August will be announced on 31 August 2021. China will announce the Caixin Manufacturing PMI for August on 1 September 2021. In Europe, retail Sales data for July will be declared on 3 September 2021.
US Fed to slow aid for economy
The Federal Reserve will start dialling back its ultra-low-rate policies this year as long as hiring continues to improve, Chair Jerome Powell said Friday, signalling the beginning of the end of the Fed’s extraordinary response to the pandemic recession. The Fed’s move could lead, over time, to somewhat higher borrowing costs for mortgages, credit cards and business loans. The Fed has been buying $120 billion a month in mortgage and Treasury bonds to try to hold down longer-term loan rates to spur borrowing and spending. Powell’s comments indicate the Fed will likely announce a reduction — or “tapering” — of those purchases sometime in the final three months of this year.
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