Equities may well continue their volatile streak this week, much like the past one, as key numbers and policy decisions may swing the market mood.
Among them are benchmark inflation, US and Indian monetary policies and the rupee’s movement after a round of strengthening from all-time lows.
“The week is going to be an eventful week as the WPI (wholesale price index) inflation for the month of August is due,” says Jayant Manglik, president of retail distribution, Religare Securities. Additional cues that will guide equities would be the mid-tem monetary policy to be announced by the new governor of the Reserve Bank of India Raghuram Rajan on September 20.
“The rupee movement will be tracked closely after it has shown signs of recovery after a steep slide,” says brokerage Sharekhan.
The rupee is likely to trend under pressure despite its recent appreciation against the dollar, said Vaibhav Agrawal, vice-president of research at Angel Broking.
Export growth is going to be a significant starting point for the overall improvement in India’s macro fundamentals and export-intensive stocks are expected to do well. “We maintain our positive outlook on IT and pharma sectors,” said Agrawal.
Investors across the globe are eyeing the next meeting of the FOMC (Federal Open Market Committee) of the US Fed that is scheduled to take place on Tuesday and Wednesday. This would determine the date, quantum and manner of the expected pullout of cheap global funds in the Indian stock markets, some of which has already left India, causing market turmoil.