Stock Market Outlook: Analysts List Triggers; Global trends, WPI inflation data to map the trajectory to boost markets this week

Analysts say stocks will follow global trends, inflation data, foreign fund flows and crude oil price movements in this short holiday week. Investors will be watching the Wholesale Price Index (WPI) data released on Tuesday, as retail inflation falls to 6.71 percent in July and industrial production grows in June.

Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, said.

In an encouraging trend for the stock market, foreign investors invested Rs 22,452 crore in the first two weeks of August.

This week, the market’s focus will shift to domestic and global macro variables such as inflation trends and the resulting impact on central bank policy decisions, said Vinod Nair, Head of Research at Geojit Financial Services.

Apurva Sheth, Head of Market Perspectives at Samco Securities, said markets around the world are expected to respond to FOMC (Federal Open Market Committee) minutes to be released this week.
Due to Independence Day, the stock exchanges are closed on Monday.

The death of 62-year-old top investor Rakesh Jhunjhunwala on Sunday also came as a shock, with analysts saying he was a cheerleader for the country’s economy and markets.

Last week, the Sensex jumped 1,074 points, or 1.83 percent, and the Nifty climbed 300 points, or 1.95 percent, marking their fourth straight week of gains.

Deepak Jasani, Head of Retail Research at HDFC Securities, said that while Indian markets generally open for trading on Tuesday, may be driven by the Friday and Monday trends in US markets, they have the infinite faith and confidence of Jhunjhunwala. will miss in India’s growth story. “The intervening holiday on Monday could weaken the impact of this sudden sad event”.

According to Santosh Meena, head of research at Swastika Investmart Ltd, Jhunjhunwala’s death is a major loss to the Indian stock market.

“Always a cheerleader of India, our economy and markets, Rakesh Jhunjhunwala was a true visionary. An unparalleled optimist and a man of discipline in investment, he always came out victorious whether it was a bull market or a bear market,” CJ George, MD & CEO of Geojit Financial Services, said.

Speaking about likely market trends, Ajit Mishra, VP – Research at Religare Broking Ltd, said participants will react first in early trading Tuesday to macroeconomic data, IIP (Index of Industrial Production) and CPI (Consumer Price Index).

“Going forward, with the earnings season behind us, the performance of global markets will be the focus for signals,” he added.

Retail inflation eased to 6.71 percent in July on the back of food price moderation, but remained above the Reserve Bank’s comfort level of 6 percent for the seventh straight month.

Industrial production in India grew double-digit for the second straight month to 12.3 percent in June, mainly due to the strong performance of the manufacturing, energy and mining sectors, according to official data released on Friday.


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