Global Factors To Determine Market Trend This Week, Say Analysts
Amid lack of domestic triggers, equity markets would focus on global cues such as reduced foreign portfolio investment, U.S.-China trade talks and movement of crude oil prices and the rupee this week.
Participants are also awaiting measures from the government to boost growth and revive consumer sentiment, market analysts said.
“The result season has come to an end and majority of the companies delivered a disappointing quarter,” said Jimeet Modi, founder and chief executive officer of SAMCO Securities & StockNote. “With the slowdown looming on the economy, the companies could do very little to revive this quarter and are now mostly dependent on the government to boost sentiment and bring about a change at the grassroot level.”
“Markets are likely to receive some boost this week due to government's impetus unless the trade war issue intensifies further,” Modi said.
Ajit Mishra, vice president of research at Religare Broking Ltd., agreed. “The earnings season has ended and there are no fresh key domestic triggers. Hence, the focus will now shift to earnings recovery and investors will also take cues from global developments,” he said. “Investors would keep a close watch on progress on U.S.-China trade talks, movement of crude oil price and rupee/dollar.”
Factors such as economic slowdown, muted earnings, crisis in the automobile industry and global trade issues have been weighing on investor sentiment, analysts said.
“This week, Nifty will be looking at global cues since there has been a lot of events that are going on,” said Mustafa Nadeem, chief executive officer of Epic Research. “There are possible trade talks between U.S. President Donald Trump and his Chinese counterpart which is expected in September.”
“Global issues are not subsiding while the domestic market is floating on hopes of stimulus package,” according to Vinod Nair, head of research at Geojit Financial Services. During the past week, the Sensex declined 0.60 percent.
“Global markets are seen ending in the red for the week on concerns of trade war. This is taking a toll on the global investor confidence,” said Sanjeev Zarbade, vice president of PCG Research, Kotak Securities. “Indian markets also ended lower this week on disappointing earnings and selling by FIIs (foreign institutional investors).”