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Business News/ Markets / Stock Markets/  Stock Market triggers: GDP, auto sales, global trends, others key factors that will drive equities this week
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Stock Market triggers: GDP, auto sales, global trends, others key factors that will drive equities this week

Markets week ahead: A host of economic data including GDP and PMI, alongside ex-dividend stocks, Q4 results, auto sales, and global trends are some of the key factors to dictate Indian markets during the trading week from May 29th to June 2nd.

Sensex and Nifty 50 ended a 2-week-long consolidation phase with an upside of around 1% in the week that ended on May 26th. Nifty has outperformed its counterpart and predictions are that this benchmark could race to new record high. Premium
Sensex and Nifty 50 ended a 2-week-long consolidation phase with an upside of around 1% in the week that ended on May 26th. Nifty has outperformed its counterpart and predictions are that this benchmark could race to new record high.

The coming week will see the onset of a new month with investors eyeing a host of factors such as upcoming GDP data, manufacturing and services PMI data, auto sales, metal companies production data, and global trends especially the US markets performance amidst ongoing debt ceiling negotiations. In the week that ended on May 26th, markets settled a 2-week-long consolidation phase and gained by around 1%. Nifty 50 outperformed its counterpart Sensex.

On Friday, Sensex closed at 62,501.69 up by 629.07 points or 1.02%. While Nifty 50 ended at 18,499.35 up by 178.20 points or 0.97%. Broad-based buying was seen across the indices.

However, from May 22nd to 26th trading week, Sensex jumped by 588.13 points or 0.95%, on the contrary, Nifty 50 surpassed with gains of 248.75 points or 1.36%.

Also, both foreign institutional investors and domestic institutional investors were buyers throughout the week. FIIs bought 3,230.49 crore worth of equities, while DIIs surpass foreign investors with an inflow of 3,482.21 crore.

On the weekly performance, Ajit Mishra, VP of Research, Religare Broking said, "Markets ended a 2-week long consolidation phase and gained over one and a half percent. After a firm start, the benchmark remained range bound in the middle, tracking mixed global cues however strong recovery in the final sessions changed the tone. Consequently, Nifty managed to surpass the hurdle at 18,400 and settled around the week’s high at 18,499.30 levels."

Read here: FPIs inflow hits 9-month high to 37,317 crore in May; will robust foreign funds flow drive Nifty to record high?

He added, "All sectors contributed to the move wherein metal, pharma and IT were the top gainers. The buoyancy continued on the broader front, with the midcap index scaling to a new high."

In the week ahead, which would be from May 29th to June 2nd, auto stocks and metal stocks will be focused due to their monthly performance data. Further, a host of economic data awaits alongside global trends.

According to Mishra, the coming week marks the beginning of the new month also so participants will be eyeing high-frequency data viz. auto sales, manufacturing PMI, and services PMI data. Before that, the GDP data, scheduled on May 31, will also be on their radar. Apart from these factors, the performance of the US markets amid the ongoing debt ceiling talks will be in focus.

Read here: Jefferies include Zomato, SBI Life to long-only portfolios, drops HDFC Life

A few companies are also set to announce their Q4 results. He said, "As we are entering into the last leg of the earnings season, we have companies like Aurobindo Pharma, Apollo Hospitals, Adani Ports, IRCTC, and PFC, who will be announcing their numbers during the week."

Also, Vedanta, ITC, SBI, Shree Cements, Trident, Havells India, IndusInd Bank, Infosys, JSW Energy, Mahindra CIE, and Anand Rathi are some of the stocks that will turn ex-dividend in the week ahead.

The primary market will also see a busy week with SME initial public offers (IPO). Companies like Infollion Research Services Ltd, CFF Fluid Control Ltd, and Comrade Appliances Ltd will open for subscription this week.

Read here: Three SME IPOs to open for public subscription in the week ahead; check details

Religare's expert believes Nifty looks set for a new high after the consolidation breakout, thanks to improved participation from across sectors. However, stability on the global front would be critical else the momentum could derail. On the downside, the 18,050-18,200 zone would offer the support, in case of any dip.

He added, "Though we are seeing broad-based buying, the focus should remain on identifying the leaders from the respective sectors instead of adding laggards in the hope of recovery."

Meanwhile, Amol Athawale, Technical Analyst (VP), Kotak Securities said, the short-term market outlook is considered robust, with key levels at 18350/62000 acting as trend deciders. If the index moves above these levels, it could rise towards 18600/62800 and potentially continue further to 18680/63000. Conversely, if the index falls below 18350/62000, traders may prefer to exit their long positions.

Lastly, in regard to GDP, Vinod Nair, Head of Research at Geojit Financial Services said, "With the upcoming Q4 GDP data, it is anticipated that India's FY23 GDP will surpass the earlier projected 7.0% growth rate, thereby improving the overall outlook of the Indian economy."

 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 28 May 2023, 11:41 AM IST
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