The markets on the five trading sessions last week, gained on two and lost on three. The Indian equities gave negative returns, the US markets went positive and the trend was largely mixed in the Asian markets during last week.
The RBI's decision to increase its annual inflation projection has increased the chances of further continuation in the rate-cut trajectory, possibly extending into the fiscal year 2025. The introduction of a 10 percent additional Cash Reserve Ratio (CRR) for bank and ongoing outflows of foreign institutional investment (FII), has placed negative influence on market sentiment.
This turn of events is likely to have an impact on the market opening on Monday, at least for the short term or the open.
Macroeconomic indicators, rupee and FII activities will be pivotal in shaping market trends in the coming days. Domestically, inflation figures hold significance. Globally, attention will be directed toward Japan's inflation data, China's IIP numbers, and the US retail sales statistics," said Santosh Meena, Head of Research, Swastika Investmart Ltd.
On the macroeconomic front, wholesale and retail inflation numbers for July would be announced on Monday.
Market Last Week
Last week, the BSE benchmark fell by 398.6 points or 0.60 percent and NSE Nifty fell by 88.7 points.
The Sensex on Friday falls 380.25 points to end the day at 65,307.93 and the Nifty was at 19,428.30, down by 114.80 points.
Earnings
Among major earnings to be announced this week are from ITC, Divas Laboratories, Vodafone Idea, Easy Trip Planners, Hindustan Copper.
CPI and WPI Inflation
Amidst the rising inflation, the market participants will be closely observing the CPI data scheduled for release on August 14th. The WPI inflation for the July will also be released on the same and the Balance for Trade data for July will be released on August 15th.
The foreign exchange reserves data for the week ending on August 11th is set to be released on August 18th.
"India's WPI and CPI inflation data, exports and imports numbers will be in focus in the coming days. We expect the Indian market will continue to remain rangebound and will take further cues from US jobs data and minutes of the Federal Open Market Committee (FOMC) meeting," Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said.
IPO
This week will be yet another busy week with public issues opening for bidding and for listing in the primary market. TVS Supply Chain Solutions IPO will be on investors’ radar which opened on August 10 and closing on August 14. Ahead of that Pyramid Technoplast will be opening Rs 153-crore public issue on August 18th.
Shoora Designs will launch its public offering on Thursday, August 17th, in the SME sector and Bondada Engineering and Crop Life Science will launch on August 18th.
FII
The market's performance on Monday will significantly hinge upon the actions of Foreign Institutional Investors (FIIs). Following five consecutive months of persistent buying, Foreign Institutional Investors (FIIs) shifted their stance and became net sellers in August. During this month, Foreign Portfolio Investors (FPIs) sold stocks amounting to Rs 7,543 crore.
