Analysts note that trading sentiment in the stock market this week will largely depend on the release of domestic GDP data, crude oil prices, and the US report on non-farm employment.
Furthermore, market movement will be regulated by announcements on macroeconomic indicators, car sales data, and foreign investor activity.
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Experts predict that next week promises to be eventful, as the market direction will likely be determined by domestic GDP data and global economic reports. For instance, India's Q1 GDP data for the fiscal year 27 will be published on August 31. Investors will also monitor India's August PMI figures for manufacturing and services, GST collections, foreign exchange reserves, and the rupee's movement.
The most important trigger will remain the US employment data, with the August non-farm payrolls report scheduled for September 4. As Mishra added, the outcome of this report could significantly influence expectations regarding the Federal Reserve's September decision, the US dollar exchange rate, Treasury bond yields, and capital flows into emerging markets.
Foreign Portfolio Investors (FPIs) invested INR 30,919 crore in Indian stocks in August, continuing the buying trend for the second consecutive month.
Regarding the domestic situation, according to Ponmudi R, the first quarter GDP will be an important factor for overall risk sentiment, providing more clarity on the pace of domestic growth amid high energy prices and the unresolved Middle East conflict, which has disrupted global supply chains and contributed to commodity price increases.
Ponmudi also noted that US monetary policy has become a dominant global catalyst following the hawkish remarks by Fed Chairman Kevin Warsh in Jackson Hole. Markets will await the August employment report, due on September 4, and the next inflation figure to determine whether recently increased expectations for a September rate hike will persist or weaken.
Last week, the BSE Sensex index fell by 276.32 points, or 0.35 percent, and the NSE Nifty dropped by 76.35 points, or 0.31 percent.
Hariselvan Radhakrishnan emphasized that India's Q1 GDP data, to be presented on Monday, will provide insight into the trajectory of domestic growth, while the US non-farm payrolls report on Friday is expected to influence global investor sentiment as they reassess expectations for the Federal Reserve's September decision following Kevin Warsh's speech in Jackson Hole.