The combined market valuation of seven of the top-10 most-valued firms eroded by Rs 1.13 trillion in a week with Bharti Airtel and Reliance Industries emerging as the biggest laggards.
In a week, BSE benchmark Sensex declined 276.32 points, or 0.35 per cent, and the NSE Nifty dipped 76.35 points, or 0.31 per cent. On Friday close, the Sensex was up 330.92 points or 0.43 percent at 77,264.51, and the Nifty was up 84.80 points or 0.35 percent at 24,175.65.
For the coming week, the trading sentiment week will be largely guided by the domestic GDP data announcement, crude oil prices, and the US non-farm payrolls report.
Auto sales numbers and trading activity of foreign investors would also guide movement in the market going ahead.
US employment data:
US is set to releases its employment data this week. It will be most important trigger for the markets with the August non-farm payrolls report scheduled for September 4.
The outcome could also significantly influence the US dollar, and Treasury yields that will in turn impact the Indian markets.
Foreign portfolio investors:
Foreign portfolio investors (FPIs) have infused Rs 30,918 crore in Indian equities in August, as per the data with the depositories.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited said, “During August, up to 29th, FPIs bought equity for Rs 30918 crores, of which Rs 18790 was through exchanges and Rs 12128 crores was through “primary market and others” category. This is the second month in a row that FPIs have turned buyers in India.
The important factors driving the FPI flows into India are the reversal of the chip trade, the stability in the rupee and more importantly the improving earnings growth in India.
A significant trend in FPI investment in India recently is the direction of flows towards the SMIDs (mid-and small-caps.) Growth and earnings momentum are much higher in the SMIDs compared to the large-caps. This trend of FPI investment in SMIDs is likely to continue.
GDP Data:
India’s first-quarter GDP data will be released on Monday. It will be offering insights into the domestic growth trajectory.
Investors will also monitor India’s August manufacturing and services PMI readings, GST collections, foreign exchange reserves.
Crude Oil Prices:
Last week on Friday, Brent crude settled at $89.31 per barrel and WTI at $83.40 per barrel with Brent losing over more than 5% during the week.
The oil prices will be heavily dependent on the geopolitical situation and will be a key trigger for the markets.