Market Trends To Be Shaped By Inflation Data and Global Influences: Analysts

Analysts suggest that macroeconomic data releases, global trends, and foreign investor trading activity will be the key drivers for equity markets this week.

Among macroeconomic data announcements, industrial production for July and inflation data for August will be announced on Thursday.

“Crude oil prices have seen a meaningful correction over the past few days with Brent crude now close to USD 73 per barrel. In India, investors will look forward to the release of macro data this week, including CPI inflation. Globally, investors remain optimistic about the possibility of a rate cut by the US Fed and would keenly look forward to the US Fed meet scheduled later this month,” Shrikant Chouhan, Head of Equity Research, Kotak Securities, said.

Last week, the BSE benchmark dropped 1,181.84 points, or 1.43%, while the Nifty declined 383.75 points or 1.52%.

Falling for the third day running on Friday, the 30-share BSE Sensex tumbled 1,017.23 points, or 1.24%, to settle at 81,183.93.

The NSE Nifty dropped 292.95 points, or 1.17%, to 24,852.15, its third day of decline.

“We expect consolidation mode to continue in the market over the near term,” Siddhartha Khemka, Head, Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.

Investors would also track the movement of global oil benchmark Brent crude and rupee-dollar trends.

In the week ahead, US inflation data will be closely monitored, Vinod Nair, Head of Research, Geojit Financial Services, said.

Mcap of Eight of Top-10 Most Valued Firms Erode by Rs 2 Lakh Cr

The combined market valuation of eight of the top-10 most valued firms got eroded by Rs 2,01,699.77 crore last week, with Reliance Industries and Tata Consultancy Services emerging as the biggest laggards, in line with weak trends in equities.

The market valuation of Reliance Industries tumbled Rs 60,824.68 crore to Rs 19,82,282.42 crore.

The valuation of Tata Consultancy Services (TCS) slumped Rs 34,136.66 crore to Rs 16,12,762.51 crore.

State Bank of India’s valuation dropped Rs 29,495.84 crore to Rs 6,98,440.13 crore and that of Bharti Airtel diminished Rs 28,379.54 crore to Rs 8,76,207.58 crore.

The market capitalisation (mcap) of Infosys tanked Rs 17,061.44 crore to Rs 7,89,819.06 crore and that of Life Insurance Corporation of India (LIC) eroded by Rs 16,381.74 crore to Rs 6,57,009.14 crore.

ICICI Bank’s mcap declined Rs 15,169.76 crore to Rs 8,51,204.65 crore and that of ITC was down Rs 250.11 crore to Rs 6,27,337.65 crore.

However, Hindustan Unilever added Rs 14,179.78 crore, taking its market valuation to Rs 6,66,919.73 crore.

The mcap of HDFC Bank climbed Rs 3,735.35 crore to Rs 12,47,941.78 crore.

Reliance Industries remained the most-valued domestic firm followed by TCS, HDFC Bank, Airtel, ICICI Bank, Infosys, State Bank of India, Hindustan Unilever, LIC, and ITC.

(With agency inputs)