The stock market is soaring every week, the benchmark indices witnessed a sharp rally last week, so much so, that 30-share Sensex reached an all-time high of 60,000 on Friday. It just took 8 months for the equity market here in India to cross that 60,000 mark. The 30-share BSE Sensex was trading somewhere around 50,000 in January this year and within in 8 months, the benchmark indices surged to an all-time high of 60,000. The Nifty on Friday closed at 17,580 on Friday.
“Though the domestic market demonstrated a flattish trend in the beginning of the week due to global sentiments aided by concerns of central bank meetings and worries in the Chinese market, indices soared to close at record highs. Global markets tempered optimism despite a slightly hawkish tilt by the Fed Reserve intimating that the US Central Bank will begin reducing its asset purchases in November and conclude the tapering process around mid-2022. Realty stocks outperformed other sectors owing to an increase in property registrations, and cut in stamp duty (Karnataka) and home loan rates. However, profit-booking was noticeable in mid & small-cap stocks, which were under pressure and can continue in the short-term,” Vinod Nair, head of research at Geojit Financial Services.
“In a relatively quiet week for domestic economic data releases, the market is bound to track global cues for direction. The Manufacturing PMI index for September which is to be released next week will help in forming a view on business activities during the month," Nair added.
Here are some things that are going to influence the course of the market next week.
Coronavirus and Vaccination
With the pace of vaccination picking up, the cases are dipping and the number of cases since last few days have remained below 35,000. The positivity rate has stayed below 2 per cent. This factor has largely enthused the markets and improved the sentiment on Dalal Street. More than 71.04 lakh doses of Covid vaccines were administered in the last 24 hours ended at 8 am on Saturday and as a result of which, India vaccinated more over 85 crore people so far. With this, nearly 46 percent of population has been vaccinated with first dose and more than 16 percent of population in the country fully vaccinated now.
The Auto sales number for the month of September, will start coming in from October 1. The auto sales data will be weighing on the markets and investors on the Dalal Street. In the wake of ongoing semiconductor shortage, the sales number will be significant for investors. Auto stocks including Tata Motors, Maruti Suzuki, Mahindra & Mahindra, Eicher Motors, Bajaj Auto, TVS Motor Company, Ashok Leyland, Hero MotoCorp and Escorts will be in focus. So far the auto sector has been a big underperformer in the current financial year so far.
The indicators like Infrastructure output, external debt data for the second quarter, Manufacturing PMI all are scheduled to be announced next week. These are some key indicators that the market would be looking up to.
Some companies are going to be listed on the bourses next week. Paras Defence and Space Technologies will make its debut on Dalal Street in later part of the week on October 1 after its issue being subscribed 304 times, the highest among IPOs launched at least since 2007. The final issue price is expected to be fixed at Rs 175 per share, the upper end of price band. Considering the massive subscription demand, strong product portfolio & technology, and robust growth potential.
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