- Upcoming GDP data, crude oil prices, and US jobs report will guide market sentiment this week
- India's Q1 FY27 GDP data will be released on August 31
- US non-farm payrolls report on September 4 will influence Fed policy expectations and markets
The market sentiment this week is likely to be driven largely by the upcoming gross-domestic-product data, movements in crude oil prices and the US non-farm payrolls report, according to analysts.
Besides these key indicators, investors will also track other macroeconomic data, monthly auto sales figures and foreign investor activity for cues on the market's direction, they added.
"The coming week is expected to remain highly eventful, with domestic GDP data and global economic releases likely to determine market direction. India's Q1 FY27 GDP data will be released on August 31," Ajit Mishra, senior vice president of research at Religare Broking Ltd, said.
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The focus will be on India's August manufacturing and services PMI readings before making any investment in the market, Mishra said. "Investors will also monitor India's August manufacturing and services PMI readings, GST collections, foreign exchange reserves and movement in the rupee."
US employment data will remain the most important trigger, with the August non-farm payrolls report scheduled for September 4, he said. "The outcome could significantly influence expectations regarding the Federal Reserve's September policy decision, the US dollar, Treasury yields and emerging-market fund flows," Mishra added.
In August, foreign portfolio investors invested Rs 30,919 crore in Indian stocks, continuing their purchasing pattern for a second consecutive month.
"On the domestic front, first-quarter GDP data will be an important factor for broader risk sentiment, offering greater clarity on the pace of domestic growth against the backdrop of elevated energy prices and an unresolved Middle East conflict that has disrupted global supply lines and contributed to higher commodity prices," Ponmudi R, chief executive officer of Enrich Money, an online trading and wealth tech firm, said.
He noted that after Fed Chair Kevin Warsh's hawkish comments at Jackson Hole, US monetary policy is now the primary global factor. "Markets will look ahead to the August jobs report, due September 4, along with the next inflation reading, as key data points in determining whether the recently increased expectations of a September rate hike hold or ease," Ponmudi said.
The BSE Sensex fell 276.32 points or 0.35% and the NSE Nifty 50 fell 76.35 points or 0.31% last week.
"India's first-quarter GDP data on Monday will offer insights into the domestic growth trajectory, while Friday's US non-farm payrolls report is expected to influence global market sentiment as investors reassess expectations for the Federal Reserve's September policy decision following Kevin Warsh's hawkish Jackson Hole address," Hariselvan Radhakrishnan, CEO of HST Wealth, said.
(With PTI Inputs)
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