RIL AGM among 7 key factors that may guide markets this week

Feeble global cues, expectations of hawkish Fed and profit booking kept investors on toes. Also, absence of major directional cues too helped the volatility to have an upper hand.

On a sectoral front, IT emerged as the top laggard followed by pharma. However, state-run lenders stole the show followed by media and energy stocks.

Nifty is taking a breather after a phenomenal surge and currently hovering in a narrow range of 17,300-17,800. It would be critical to see how our markets react to the US fall on Monday, said Ajit Mishra, VP – Research, Broking.

“We reiterate our view of focusing more on risk management during this corrective phase and suggest continuing with a stock-specific trading approach until the Nifty resumes the trend,” he added.

Below are the seven key factors that may guide markets this week:

Jackson Hole Symposium

Speaking at the Jackson Hole, Wyoming, the US Federal Reserve Chair Jerome Powell made it clear that the central bank is aiming to tame inflation over growth and is willing to keep the interest rate lofted to battle the rising prices.

His stiff and hawkish speech sent the US indices falling up to 4 per cent on Friday and Indian markets may feel the wrath of the sharp fall too. Indian markets will react to his commentary on Monday.


India’s GDP numbers

India will report its GDP numbers for the June 2022 quarter next week on Wednesday. Indian economy likely grew 15.1% in Q1 of FY23 aided by a favourable base and revival in services as all Covid restrictions were removed, a Reuters poll found.

Ahead of GDP numbers, India would grow at 7.4 per cent in the current fiscal (financial year 2022-23) and continue at the same level in the next fiscal as well, Union finance minister Nirmala Sitharaman projected on Friday.

Reliance Industries’ AGM

Reliance Industries, the largest listed company on the Indian bourses will host its 44th annual general meeting (AGM) on August 29 Monday and Dalal Street would be keenly awaiting what Mukesh Ambani would reveal to the investors.

Market is expecting an update on the success plan of the company, 5G rollout and future roadmap for the renewable energy business. However, any update over demerger or IPOs of retail and telecom business is unlikely, as reported by ET Now.

Auto sales numbers

The markets react well to the sales numbers of the auto companies for the month of August. The first month of the second half of the current year was a mixed bag for the auto companies, whereas markets hoped for recovery ahead of the festive season.

In July two-wheelers sales grew marginally, whereas passengers vehicles and commercial vehicles saw a solid growth. Though, improvement in inventories and new launches will aid the auto sales numbers after a dull monsoon season.

FII flows

Indian equity markets continue to see foreign inflows amid the rising bond yield and stronger dollar as FPIs snapped the eight month losing streak and poured in more than Rs 45,000 crore in the domestic equity markets.

FPIs are now buying stocks of financials, capital goods, FMCG and telecom. FPIs are buying in India amid strengthening dollar is a reflection of their confidence in the Indian economy, said V K Vijayakumar, Chief Investment Strategist at

.

“The ultra-hawkish stance of the Fed at Jackson Hole is a short-term negative for equity markets. This might impact FPI flows in the short-term, he added.

US jobless claims

Initial jobless claims measures the number of people who filed for unemployment insurance for the first time during the past week. This data would be keenly watched to track the strength of the world’s largest economy.

Technical outlook

Nifty50 index closed on a negative note following the formation of a bearish evening star candlestick pattern on a weekly timeframe. The short-term trend is still optimistic, but the market still remains elevated from the means at the same time, so the upside is likely to be limited, said Apurva Sheth, Head of Market Perspectives, Samco Securities.

“We believe the levels around 17,400 on the Nifty are likely to serve as make or break levels. A break below this level may result in a retest of the 17,100 level. Until then, traders should have a mildly bullish outlook,” he added.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)