Analysts believe that in the coming week, the main factors influencing stock market movements will remain crude oil prices and events related to the conflict between the US and Iran.
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, noted that investors will closely monitor the Jackson Hole symposium, paying particular attention to comments from the Chairman of the US Federal Reserve to gain insight into the future trajectory of interest rates. Furthermore, key information regarding the strength of the US economy and the outlook for Fed policy may be provided by US GDP estimates, durable goods orders, and consumer confidence.
In the domestic market, investors will track the movement of the rupee, the inflow of funds from foreign institutional investors, and domestic liquidity conditions.
Key Focus Areas for Global Markets
Global markets enter the next week focused on three key themes: the trajectory of Federal Reserve policy, Nvidia's quarterly results, and the unresolved conflict between the US and Iran.
According to Ponmudi R, CEO of Enrich Money, Chairman of the Fed Kevin Warsh's speech at the Jackson Hole symposium will be closely analyzed for how the central bank weighs persistent inflation risks against signs of labor market slowdown before the September policy meeting. He also emphasized that crude oil remains another major external risk.
Ponmudi added that the six-month agreement between the US and Iran expired without a final resolution, leading the Strait of Hormuz to become the center of an unresolved confrontation, disrupting normal energy flows in the region.
Foreign Portfolio Investors (FPI) have increased purchases of Indian stocks this month, having invested INR 23,544 crore so far in August.
Last week, the BSE Sensex index fell by 468.42 points, or 0.60 percent, and the NSE Nifty index dropped by 114 points, or 0.46 percent.
Siddhartha Kemka, Head of Research at Motilal Oswal Financial Services Ltd, suggested that after two weeks of correction, Indian stock markets might consolidate, expecting a slight recovery in the near term. Key indicators to watch include Brent crude oil prices, which are holding above $90 per barrel, as well as geopolitical events.
