In the upcoming week, equity market momentum will be influenced by global trends, foreign investors' trading activity, and the movements of the Brent crude oil benchmark will exert influence over the domestic markets.
"This week marks the September month Futures and Options (F&O) expiry, which is expected to bring about volatility in the market," said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Market last week
During the previous week, the BSE benchmark fell 1,829.48 points or 2.69 per cent, and the Nifty declined 518.1 points or 2.56 per cent.
The 30-share BSE Sensex on Friday shed 221.09 points or 0.33 percent to end the day at 66,009.15. The NSE Nifty went down by 68.10 points or 0.34 percent to end the day at 19,674.25. The Nifty Bank fell by 11.80 points or 0.03 percent to 44,612.05.
In the upcoming week, the stock market is anticipating the launch of sixteen initial public offerings (IPOs).
In the Primary market, JSW Infrastructure IPO and Updater Services IPO will open for subscription on September 25 and Valiant Laboratories IPO will open on September 27.
In the SME (Small and Medium-sized Enterprises) segment, Sai Silks Kalamandir and Signatureglobal India will commence their IPOs from September 20 to September 22, with price ranges of Rs 210-222 per share and Rs 366-385 per share, respectively.
Vaibhav Jewellers' IPO will be available for subscription from September 22 to September 26, with shares priced between Rs 204 and Rs 215. Furthermore, Kontor Space IPO, E Factor Experiences IPO, Vinyas Innovative Technologies IPO, and Canarys Automations IPO are scheduled to open for subscription on September 27, while Vishnusurya Projects and Infra IPO will be available for subscription starting September 29.
In the upcoming listings, Yatra Online's shares are set to be listed on both the BSE and NSE on September 29. Meanwhile, Chavda Infra Ltd will make its debut on the NSE SME platform on September 25, followed by Kundan Edifice on September 26. On September 28, the NSE SME will list shares of Kody Technolab Ltd, Holmarc Opto-Mechatronics Ltd, and Cellecor Gadgets. Lastly, on September 29, shares of Master Components Ltd and Techknowgreen Solutions will also be listed on the NSE SME platform.
Global economic data points
"Global and domestic macroeconomic data, trend in global stock markets, crude oil prices, movement of rupee against the dollar, investment by FIIs (Foreign Institutional Investors) and DIIs (Domestic Institutional Investors) will be in focus.Market will take further cues from some key events such as the US GDP data, UK GDP and Eurozone inflation," Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said.
"Last week has seen significant profit-booking in the market, primarily driven by a steep decline in HDFC Bank, weak global cues, and substantial selling by foreign institutional investors. The global markets are facing challenges, particularly after the ultra-hawkish FOMC (Federal Open Market Committee) policy," Meena said.
"While the FOMC kept key interest rates unchanged in their recent meeting, the markets reacted negatively to the US Fed's hawkish stance on interest rates. Crude prices remain elevated," said Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd.
Domestic economic data points
In terms of the domestic macroeconomic outlook, key data points including the fiscal deficit and infrastructure output figures for August, along with foreign exchange reserves as of September 22, are scheduled for release on September 29. Additionally, on the same date, we can expect the release of current account and external debt data for the quarter ending June 2023.
FII and FPI
Analysts report that Foreign Institutional Investors (FIIs) have divested approximately ₹7,300 crore over the past three trading sessions and approximately ₹16,934 crore in Indian equities up to September 21.
On Friday, FIIs collectively made purchases of ₹10,840.20 crore in Indian equities, while simultaneously selling ₹12,166.94 crore, resulting in an outflow of ₹12,166.94 crore on September 22.
According to data from the National Securities Depository Ltd (NSDL), Foreign Portfolio Investors (FPIs) have offloaded Indian equities worth ₹10,164 crore and a total of ₹10,100 crore, encompassing debt, hybrid, debt-VRR, and equities, as of September 22.