Stock Market Outlook for the week ( 20- 24 Sept 2021)
Indian stock market gained more than a percent during the week ended 17 Sept, the broader markets also gained in line with their larger peers. Market Indexes touched a new high during the week. The market started with a flat note on Monday and gained momentum in the mid of the week. The reasons for the gains are positive economic data, government reforms, under-control coronavirus, and FIIs inflow.
However, the upside of the Indian stock market remained capped due to weak global cues. Last week, the domestic events drive the markets while next week stock markets will be influenced by the global cues as the FOMC meeting and other important events are lined up.
Factors that may impact the Indian stock market next week
Macroeconomic data
Last week the stock markets were optimistic due to encouraging economic data released for the month of August. In the coming week, there are no major domestic events lined up. On Monday, the market will first react to the GST Council meeting held on Friday aftermarkets.
GST Council has proposed to make the food delivery apps like Zomato, Swiggy liable to pay GST at 5% with effect from 1st Jan 2022. The GST Council has extended the concession on select life-saving and Covid-19 drugs. However, petrol and diesel will be not included under GST at this time, FM Nirmala Sitharaman said on Friday.
Global stock market cues
Last week, the upside of the Indian markets remained capped due to weak global cues. The major global stock market indexes were closed in the red during the week ended 17 Sept. The reason for the downbeat global cues was due to the concerns about weak economic data, worries about tighter monetary policies in the Central bank’s meeting, and the surging delta variants of Covid-19.
In the coming week, the global cues will play a vital role to decide the Indian market direction. In absence of any major domestic events, next week some important global events like the FOMC meeting, BOE, and BOJ’s interest rate decisions are likely to impact the Indian stock market. The other macroeconomic data scheduled for the next week are
| Important Global Macro Data Next Week | ||
| 22 Sept 2021 | Loan Prime Rate | China |
| 22 Sept 2021 | BOJ Interest rate decision | Japan |
| 22 Sept 2021 | Fed’s Interest rate decision | US |
| 22 Sept 2021 | FOMC Economic projections | US |
| 23 Sept 2021 | Markit/CIPS PMI flash Sept | GB |
| 23 Sept 2021 | BOE interest rate decision | GB |
| 23 Sept 2021 | MPC meeting minutes | GB |
| 23 Sept 2021 | US Jobless claim | US |
| 23 Sept 2021 | Markit PMI Flash Sept | US |
| 24 Sept 2021 | Inflation rate Aug | Japan |
| 24 Sept 2021 | Jibun Bank PMI Flash | Japan |
FII & DIIs investment in Indian stock market
On a weekly basis, Foreign Institutional Investors (FIIs) were the buyers and the Domestic Institutional Investors (DIIs) were the sellers in the cash market segments. FIIs bought Rs 6476.22 crores while DIIs sold Rs 2895.91 crore in the cash market during the week ended 17 September.
Foreign Institutional Investors (FIIs) have turned buyers after selling Rs 1113.88 crores in the previous week. On a monthly basis, the FIIs bought Rs 7215.39 crores while DIIs sold Rs 1414.51 crores. FII has always played either a big supportive role in the Indian stock market or acted as a spoiler. In layman’s terms, if FIIs are buying in the market, it means the trend is positive. So traders should keep track of FIIs investment trends.
Coronavirus & Vaccination
India reported 35662 new coronavirus cases with 281 new fatalities, in the last 24 hours on Saturday. The recovery rate is currently at 97.65 percent. At present, the coronavirus situation in India is under control but globally, the delta variants of Covid-19 are surging.
The recent Covid outbreak in China’s Fujian province worried the global investors. Though the delta variant of Covid-19 cases is now under control in some countries sill is a concern.
India achieved a significant milestone by administering the 2.5 cr covid-19 vaccine on Friday. So far India has administered more than 80 cr doses. The vaccination drive will further be accelerated from the month of October as Serum Institute is likely to scale up the production. This will help to achieve the target of vaccinating the entire population by December end. The positive news related to Covid-19 and Vaccination will further boost the market sentiments.
You can read the Nifty and Bank Nifty futures prediction/target for Monday separately on our website.
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