F&O expiry, foreign fund flows and global indices that could influence the market


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Global indices will take center stage this week as Dalal Street prepares for the monthly F&O expiry week. A key reading of US GDP and the Fed Chairman’s speech at the Jackson Hole symposium will be on the radar of investors around the world.

The focus on Dalal Street will be on global signals this week, with a key GDP reading from the world’s largest economy and a speech by Fed Chairman Jerome Powell at the annual Jackson Hole Symposium. With us, the expiration of monthly derivative contracts – or futures and options – will be in the spotlight.

Foreign fund flows and movements in the rupiah as well as crude oil will remain on investors’ radar as the market returns to a full week of trading after two consecutive truncated weeks during the holidays.

“The market could experience some consolidation after five consecutive weeks of bulls and that would be healthy. We have hardly seen any major declines in the Nifty50 in recent consolidation phases. However, much would depend on the performance of US indices this week where we still see room for further upside,” said Ajit Mishra, VP of Research at Religare Broking.

He expects a base for the index in the 17,300-17,600 area this week and warns that a rebound towards the 17,850-18,100 levels could attract profit bookings.

The week that was

India’s equity benchmarks posted their fifth consecutive weekly gains on Friday, amid positive global moves and buoyant buying by foreign institutional investors. Both major indexes rose 0.3%, with the Sensex gaining 183.4 points for the week and the Nifty50 adding 60.3 points.

No fewer than 30 Nifty50 stocks ended the week higher. Adani Ports, Eicher Motors, Larsen & Toubro, Tech Mahindra and Bajaj Finserv were the top winners.
F&O expiry, foreign fund flows and global indices that could influence the market

Bharti Airtel, Bharat Petroleum, SBI Life, NTPC and Tech Mahindra – rising between 2.5% and 3.2% – were also among the top gainers.

On the other hand, Apollo, ONGC, UPL, Tata Steel and Hindalco Hospitals were the major top tier laggards.

F&O expiry, foreign fund flows and global indices that could influence the market
F&O expiry, foreign fund flows and global indices that could influence the market

Broader indices also contributed to the rise.

Index Weekly variation (%)
Clever Midcap 100 0.6
Clever small cap 100 0.4

FIIs bought net Indian stocks worth a total of Rs 10,979.1 crore in two consecutive truncated weeks during the holidays, according to provisional exchange data.

F&O expiry, foreign fund flows and global indices that could influence the market

Domestic institutional investors net offloaded shares worth Rs 4,287.1 crore during the period.

F&O expiry, foreign fund flows and global indices that could influence the market

Here are the main factors and events likely to influence Dalal Street during the week starting August 22:

GLOBAL INDEXES

Date WE Europe Asia
August 22 China Lending Prime Rate Decision, Hong Kong Inflation Data
August 23 Manufacturing and services PMI data, housing sales data Services and PMI readings from France, Germany and the Eurozone; Eurozone Consumer Confidence Data, ECB Executive Board Member Fabio Panetta to Speak Japan Manufacturing and Services PMI Data
August 24 Crude oil inventory data, Fed official Neel Kashkari to speak
August 25 GDP data, unemployment insurance claims data, Jackson Hole symposium GDP data from Germany, car production data from the UK, unemployment claims data from France BoJ Board Member Toyoaki Nakamura to Speak on Hong Kong Trade Data
August 26 Fed Chairman Jerome Powell will speak Data on consumer confidence in Germany and France Inflation data in Japan

DOMESTIC INDICES

Macroeconomic data

The RBI’s bi-monthly data on deposits and loans is due on Friday.


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