Indian equities head into the coming week with investors watching crude oil prices above $100 a barrel, fresh inflation readings in India and the United States, rupee movements, global bond yields and a busy corporate earnings calendar — factors that will test whether Friday's sharp rebound can hold after eight straight weeks of losses.
Domestic benchmark indices staged a strong recovery on Friday, with buying across information technology, fast-moving consumer goods, automobile and financial stocks lifting sentiment. The Nifty rose 288.65 points, or 1.30 per cent, to close at 22,520.45, while the Sensex advanced 879.09 points, or 1.23 per cent, to settle at 72,472.33. The gains helped both benchmarks snap an eight-week losing streak, though persistent foreign investor outflows, elevated crude, a weakening rupee and tighter monetary policy concerns continue to weigh.
One of the biggest factors for Dalal Street will be crude. Brent is trading above the $100-per-barrel mark while West Texas Intermediate remains above $90, and uncertainty around Iran, the Strait of Hormuz and regional energy infrastructure has heightened fears of supply disruptions.
Inflation data and US bond yields will also be in focus. In the United States, the September Consumer Price Index report, due on Wednesday, will offer fresh insight into price pressures and help investors assess the Federal Reserve's next policy move, while retail sales data could keep Treasury yields and the dollar elevated — a potential drag on emerging-market equities.
In India, the September CPI and wholesale price index figures will offer clues on domestic price trends and their implications for monetary policy, while the rupee will remain a key gauge of pressure from elevated oil prices and foreign capital outflows.
Corporate earnings will be another major driver as the results season gathers pace. Investors will assess revenue growth, profit margins, management commentary and demand outlook to judge whether earnings can support valuations in a challenging environment.
Sources:
The Hawk (IANS): Crude Oil, Inflation Data Among Top Factors to Drive Stock Market Next Week
Domestic benchmark indices staged a strong recovery on Friday, with buying across information technology, fast-moving consumer goods, automobile and financial stocks lifting sentiment. The Nifty rose 288.65 points, or 1.30 per cent, to close at 22,520.45, while the Sensex advanced 879.09 points, or 1.23 per cent, to settle at 72,472.33. The gains helped both benchmarks snap an eight-week losing streak, though persistent foreign investor outflows, elevated crude, a weakening rupee and tighter monetary policy concerns continue to weigh.
One of the biggest factors for Dalal Street will be crude. Brent is trading above the $100-per-barrel mark while West Texas Intermediate remains above $90, and uncertainty around Iran, the Strait of Hormuz and regional energy infrastructure has heightened fears of supply disruptions.
Inflation data and US bond yields will also be in focus. In the United States, the September Consumer Price Index report, due on Wednesday, will offer fresh insight into price pressures and help investors assess the Federal Reserve's next policy move, while retail sales data could keep Treasury yields and the dollar elevated — a potential drag on emerging-market equities.
In India, the September CPI and wholesale price index figures will offer clues on domestic price trends and their implications for monetary policy, while the rupee will remain a key gauge of pressure from elevated oil prices and foreign capital outflows.
Corporate earnings will be another major driver as the results season gathers pace. Investors will assess revenue growth, profit margins, management commentary and demand outlook to judge whether earnings can support valuations in a challenging environment.
Sources:
The Hawk (IANS): Crude Oil, Inflation Data Among Top Factors to Drive Stock Market Next Week
