Last week, the stock market experienced significant turbulence, with the Sensex and Nifty indices showing an overall decline over five trading days. In the coming week, several factors related to both America and India will be decisive in determining the direction of the market. In addition to the release of important statistical data that may affect investor sentiment, attention will be focused on buying and selling activities by foreign investors.
The first determining factor is the GDP data for the first quarter. According to PTI, the next week will be particularly important for the Indian stock market as key indicators from the US and India are expected, capable of changing the market's trajectory. Specifically, India's Q1 2027 fiscal year GDP data will be presented on the last day of the month, August 31. This data could directly impact the market amid concerns about global supply chains and the continuous rise in energy prices.
The second factor influencing market dynamics is related to the US economy. US employment data for August will be published next week, September 4, and investors will closely monitor it. These reports will allow for assumptions regarding the Federal Reserve's interest rate strategy. As Ajit Mishra, SVP Research at Reliance Broking, noted, US employment data will affect not only the US dollar and American yields but may also impact emerging markets such as India.
The third factor is the buy and sell operations by FPI. Foreign investors' purchases and sales in the Indian stock market directly influence the Sensex and Nifty, and FPI investments or sell-offs next week could change the market's course. It should be noted that in August, FPI maintained confidence in the Indian market for the second consecutive month. According to depository data, approximately 31 thousand crore rupees were invested this month so far.
In addition to these three main factors, changes in crude oil prices on the international market may also affect the Indian stock market. There has been a sharp drop in crude oil prices in recent days: Brent Crude Oil is trading at $88 per barrel, while WTI Crude Price has fallen to $83 per barrel.
