INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The domestic equity market was in a jubilant mood during the week gone by, ending with gains of over two per cent, which led both
Sensex and Nifty to end at record highs of 38,800 and 11,500 levels, respectively.
Going into a truncated trading week, traders will keep an
eye on RBI policy review, the outcome of which will be announced on Friday
Auto and cement sales data will also be in their radar
All equity, commodity and currency markets will be closed on October 2 for Gandhi Jayanti.
“We feel the forthcoming RBI policy meeting may
trigger the next directional move,” says Ajit Mishra, Vice President for Research, Religare Broking
“Continue with stock-specific approach and focus more on the index majors for short-term trades,” he said.
Going by the buzz on Dalal
Street, here are five factors that are likely to chart market direction in the coming week:
RBI rate-setting meeting: The Monetary Policy
Committee (MPC) of RBI will announce its policy decision on October 4, Friday
The market expects another rate cut at this review, as economic growth rate has hit a six-year low amid a stable inflation rate
In August money policy, the MPC cut policy rate by 35 paise to 5.40 per cent
The MPC also decided to maintain an accommodative stance on money policy.
September auto, cement sales data: Cement and auto firms will
release monthly sales data in the first week of October
Investors will keep an eye particularly on auto sales data as the sector has been going through a slowdown
Auto firms will try to make it big during the festive season that starts on October 29
“We expect September retail sales to witness an improvement over that of August," Maruti Suzuki Chairman RC Bhargava said earlier this
“The booking levels have gone up compared with those last month, and have gone up substantially, and expectations are that 29th and 30th
of this month will probably witness very high retail sales," he said
PMI data: A lot of high-frequency macro data is expected to pour in at
First of all, investors will be eyeing the IHS Markit India manufacturing PMI, which is slated for release on October 1, 2019, followed by
IHS Markit India Services PMI data, which will be released on October 04, 2019
Global cues: On the global front, market participants would watch key macroeconomic data from the US starting from Redbook on October 1,
followed by jobless claims, PMI services index, factory orders, Fed balance sheet, money supply on October 3 and finally International Trade
and Baker-Hughes Rig Count on October 4.
Along with this, traders will also track developments in US politics regarding the impeachment
inquiry on President Donald Trump
Further developments on the US-China trade war front will also give direction to the market
