InvestorQ : What in your opinion could be the major weekly cues for the stock markets in the week beginning on 28 September?
Arusha Ray made post

What in your opinion could be the major weekly cues for the stock markets in the week beginning on 28 September?

diksha shah answered.
3 years ago

It is likely to be a busy week with a lot of data flows bunched in one week, 3 IPOs and two IPO listings all compressed into a single week. Here is what will drive markets this week.

· Farm bill protests look set to continue even as the government is holding firm on the Farm Bill implementation. With SAD withdrawing support, it could be hard times.

· Can the listing of Chemcon and CAMS IPOs on Oct 01 recreate the listing magic of Route Mobile and Happiest Minds? That will remain the million dollar question.

· A total of 8 IPOs will have hit the market in September 2020 with UTI AMC, Mazagon Docks and Likhitha Infra to open on September 29.

· Markets look out for the Rs.30,000 crore stimulus packages from government even as the US has been non-committal on the big fiscal stimulus.

· Indian COVID recoveries are finally faster than afflictions but the Indian markets could be spooked by the relapse in Europe and possibility of more restrictions in India.

· The Vodafone ruling at IAT may be a shock for the government but its response will have larger implications. The response is expected during the week.

· Heavy FII selling at Rs.10,500 crore of equities during the week will be the question mark with FIIs dumping shares on all days of the week due to global uncertainty.

· While rate cuts are almost ruled out in the RBI Monetary policy on October 01, markets will await dovish guidance from the MPC and more accommodative language

· Core sector numbers for August and auto numbers for September could show a bounce on low base and that could be a positively engaging factor.

· Options data indicate sub-11,000 levels on Nifty as rising VIX could work against the Nifty in a range-bound market.

· Big data points this week include fiscal deficit and current account numbers on Sep 30. Higher fiscal deficit for August likely to neutralize any CAD improvement

· Corporate focus shifts to Tata and Reliance groups as Tatas plan a buyout of Mistry stake in Tata Sons and RIL looks to expand its monetization of Reliance Retail.

Key global cues for the week will include US Q2 GDP, jobless claims, Markit PMI, EU inflation, EU PMI, Japan IIP and China manufacturing PMI.