The Indian Stock Markets will closely follow the developments from both the global as well as domestic economic indicators for the coming week. In the gone week, the markets ended in the green.
A keen watch will be on the crude oil prices, developments around the Strait of Hormuz and inflation data.
The investments by the foreign portfolio investors (FPIs) and the progress of the Q1 FY27 earnings season will also be driving the markets.
Foreign investors:
Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking said for the second consecutive week, Foreign Institutional Investors (FIIs) remained net buyers, following net purchases of Rs 59.49 billion in the previous week with an additional Rs 29.11 billion in the current week, based on provisional exchange data.
Domestic Institutional Investors (DIIs) also maintained their buying momentum, recording net purchases of ₹77.68 billion, with inflows observed in four of the five trading sessions.
The sustained buying by both FIIs and DIIs was largely driven by the de-escalation of geopolitical tensions, which helped strengthen investor confidence and supported positive market sentiment.
Crude oil prices:
Crude oil prices will continue to drive the stock markets for the coming week too. Strait of Hormuz is likely to remain a major focus for investors.
IPO investments:
From August 10 as nearly Rs 7,700 crore worth nine new IPOs will be available for investment. Five maiden public issues amounting to Rs 7,479 crore from the mainboard segment, and the remainder four offers worth Rs 203 crore from the SME segment.
Global markets:
The July US inflation report is expected to be the key macroeconomic event this week. This will be another global factor to be monitored apart from the crude oil.
Last week, the combined market valuation of four of the top-10 most valued firms last week jumped Rs 1.43 trillion. State Bank of India emerged as the biggest gainer adding Rs 63,922.03 crore, taking its market valuation to Rs 10,11,721.84 crore.
Reliance Industries, State Bank of India, Tata Consultancy Services (TCS) and Larsen & Toubro were the gainers, while Bharti Airtel, HDFC Bank, ICICI Bank, Bajaj Finance, Life Insurance Corporation of India (LIC) and Hindustan Unilever faced a combined erosion of Rs 1.23 trillion from their valuation.