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Inflation data and global trends are believed to be the main driving forces for stock markets this week which, after a record run, brought recent trading to a standstill, analysts said.
Overall market sentiment remains positive, supported by improving economic data and earnings, but higher valuations can trigger episodes of profit taking, they added.
Over the past week, the 30-stock BSE benchmark has risen 175.12 points or 0.30 percent.
“Global indices will continue to have an impact on the behavior of our market and some macroeconomic data is online this week, such as China’s industrial production, US inflation figures. Domestically, Wholesale Price Index (WPI) inflation for August 2021 is expected on September 14, “said Santosh Meena, research manager, Swastika Investmart Ltd.
Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services Ltd, also said global indices will be actively tracked as fears of an economic slowdown loom as cases of Delta variants continue to rise. .
“Even valuations are also moving beyond comfort zones and could therefore lead to episodes of profit taking and increased volatility. But overall sentiment in the domestic market remains positive, supported by improving economic data and performance. positive earnings expectations, ”Khemka said.
The markets would also be guided by the rupee-dollar trend, Brent crude and the movement of foreign institutional investors (FII).
“Inflation data for August will be a key data point that the market expects this week,” said Vinod Nair, research manager at Geojit Financial Services.
According to a note from Samco Securities Research, after a rapid rally, markets could face some small bumps in the road this week.
“The bulls are taking a break after a strong rise, but they are still holding the baton to continue their march to a new stage as there are no signs of weakness in the Indian markets,” added Santosh Meena.
According to Nair, Indian indices failed to maintain the momentum they experienced during the week (August 30-September 3), as volatility remained high due to weak global markets and the absence of new national indices to further stimulate the market.
Binod Modi, chief strategy officer at Reliance Securities, said national stock exchanges appeared tired in recent transactions after setting records.
(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)
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