This week's market movement can depend on many factors. One of the important ones is the possibility of the US Federal Reserve cutting interest rates. It is believed that this move can increase optimism in the domestic stock market. Experts believe that investors are also focused on the approaching deadline for imposing additional US tariffs on indian goods. Apart from this, the business activities of foreign investors, global trends and macroeconomic data will determine the stock market trends this week.
Market movement dependent on many things?
Stock markets will be closed on wednesday on the occasion of Ganesh Chaturthi. Market experts say that positive global cues are likely to provide some support, as US Federal Reserve Chairman Jerome Powell has indicated a possible cut in interest rates in his speech at the Jackson Hall Symposium. After this, there was a strong jump in the US markets and the dollar index weakened.
Santosh Meena, Research Chief, Swastika Investmart, says that another important factor will be the august 27 deadline related to the US plan to impose an additional 25 percent duty on indian exports. He says that in the absence of clarity, FII participation may remain low. Along with this, macroeconomic data of America, china and india will also be closely monitored.
What do brokerage firms think?
Earlier, the US markets closed with a sharp gain on Friday. The Dow Jones Industrial Average rose 1.89 percent, the Nasdaq Composite 1.88 percent and the S&P 500 1.52 percent. V.K. Vijaykumar, Chief Investment Strategist, Geojit Investments Limited, says that Fed chief Jerome Powell's Jackson Hall speech indicates a cut in interest rates in September.
On the other hand, siddharth Khemka, Research Chief, Motilal oswal Financial services Ltd, says that he expects the indian stock markets to continue to get support from optimism about GST 2.0 reforms and macroeconomic strength at the domestic level. He said that clarity on US tariff action against india at the global level and the upcoming GDP data of both india and the US will shape investor sentiment. Last week, the BSE Sensex jumped 709.19 points or 0.87 percent, while the Nifty rose 238.8 points or 0.96 percent.
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