In the upcoming week, equity market momentum will be influenced by macroeconomic data releases, global trends, and foreign investor activity.
"On the global front, close attention will be paid to movement in crude oil prices, the dollar index, and US bond yields," said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Market last week
In the previous week, the BSE benchmark surged by 878.4 points, to a 1.34 percent increase, while the Nifty saw a 384.65 point rise, equivalent to a 1.97 percent gain.
The 30-share BSE Sensex on Friday was up 333.34 points or 0.50 percent to end the day at 66,598.91. The NSE Nifty went up by 92.90 points or 0.47 percent to end at the day at 19,819.95.
Nifty Bank gained 278.05 points or 0.62 percent at 45,156.40.
In the upcoming week, the stock market is anticipating the launch of six initial public offerings (IPOs).
In the primary market,Ratnaveer Precision Engineering and Rishabh Instruments will get listed on stock exchanges BSE and NSE on September 11.
Additionally, EMS, a sewerage solutions company, will be open for subscription until September 12. Following that, RR Kabel will kick off its subscription period on September 13, followed by SAMHI Hotels and Zaggle Prepaid Ocean on September 14.
On the SME board, the IPOs of Jiwanram Sheoduttrai Industries, Unihealth Consultancy, and Meson Valves India are set to close for subscription on September 12. On the same day, Chavda Infra and Kundan Edifice will open for subscription.
Domestic economic data points
From the domestic macroeconomic front, industrial production data for July and inflation data for August will be announced on September 12. The market's response will largely be influenced by these crucial domestic events, such as India's Consumer Price Index (CPI) and Wholesale Price Index (WPI) inflation, as well as the Index of Industrial Production (IIP) numbers and manufacturing output.
Global economic data points
"Major global events that can impact the market are US inflation, initial jobless claims, industrial production, crude oil inventories, UK GDP and IIP numbers would be in focus," Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said.
In the previous week, foreign institutional investors (FIIs) sold equities valued at approximately Rs 9,300 crore, whereas domestic institutional investors (DIIs) acquired equities worth Rs 4,572.14 crore. The driving force behind FII selling since August has been the surge in US bond yields and the appreciating US dollar.
During the previous week, Brent futures climbed by 73 cents, equivalent to a 0.8 percent increase, closing at $90.65 per barrel. Simultaneously, US West Texas Intermediate (WTI) crude experienced a gain of 64 cents, or 0.7 percent, ending the week at $87.51 per barrel.
Oil prices fell on Friday amid worries of supply shortage post Saudi Arabia and Russia's extended voluntary supply cut in addition to fall in US crude inventories. Brent crude futures for November lost 33 cents at $89.59 per barrel and US West Texas Intermediate crude fell to $86.54 per barrel with a loss of 33 cents.