BSE Barometer Sensex and its counterpart NSE Nifty50 added 0.3 percent each, while BSE’s mid-cap and small-cap indices added more than one percent each.
Indian indices failed to maintain the momentum they witnessed during the previous week as volatility remained high due to weak global markets and the absence of new domestic signals to further drive the market, said Vinod Nair, director of Geojit Financial Services research.
“However, the broader markets showed resilience and outperformed the benchmark. The increase in Covid cases around the world added to market concerns,” he added.
This week, market momentum is likely to be provided by inflation figures from India and the United States. Semiconductor chip shortages may affect sentiments for RIL and auto. The IPO listing and new issues will also be the focus of investors on Dalal Street.
Here are the key factors that can keep the market going:
The National Statistical Office (NSO) under the Ministry of Statistics will release inflation figures for India for August this week.
Figures from the consumer price index (CPI) will be released on Monday, while figures from the wholesale price index (WPI) for food, fuel and manufacturing will be released on Tuesday.
India’s wholesale price index in July 2021 fell to 11.16 percent year-on-year as it finally fell below 12 percent after hitting an all-time high in May. Similarly, consumer prices increased 5.59 percent in July from the same month last year.
Last week, the Governor of the Reserve Bank of India, Shaktikanta Das, said that during the Covid pandemic, the focus of the central bank was mainly on reviving growth and the inflation target did not revolve around the 4% target. in the medium term, but at 2-6%. band that the government has established for the Monetary Policy Committee.
US economic data
The United States, the world’s largest economy, will announce its basic consumer price index (CPI) for August. The main figures for retail sales, which is a key indicator of consumer spending, will also be announced.
It will also release initial jobless claims, measuring new unemployment insurance during the week. A higher reading can alter feelings. The number of Americans seeking unemployment benefits dropped to 310,000 last week, a pandemic low.
Next Tuesday and Dalal Street will witness the Ami Organics and Vijaya Diagnostic Center stock trading. Both issues were open for subscription from September 1-3.
The Rs 570 million IPO of Ami Organics was subscribed 64.54 times and the company sold its shares in the price band of Rs 603-610 per share. Vijaya Diagnostic’s Rs 1,895 million IPO received a 4.54-fold underwriting for a price band of Rs 522-531.
A new initial public offering
The IPO of Bengaluru-based auto components maker Sansera Engineering will hit Dalal Street next week. The Rs 1,283 crore IPO can be subscribed between September 14 and 16 at a fixed price band of Rs 734-744 each.
The issue is a pure offer to sell 17,244,328 shares by its current shareholders and promoters. Investors can bid for a minimum of 20 equity shares and in multiples of 20 equity shares thereafter.
Chip shortage problems
The semiconductor chip shortage has most industries, especially the automotive sector, on a bumpy road. This chip shortage has delayed the launch of the JioPhone Next, as well as hurting car production.
According to the industry body, the Society of Indian Automobile Manufacturers (SIAM), wholesale figures for the automotive sector decreased 11 percent to 15.87 lakh units as the global semiconductor shortage weighed the production.
Delta variant propagation
Widespread fear of the Delta variant around the world may generate some reserve of profit in the stock market, as fear may raise concerns about economic recovery.
The resurgence of Covid-19 could force economies to shut down again. Market participants would not like the pause in the bull run for stocks.
“The Nifty 50 Index, after the recent sharp rise, has seen a slight slowdown around the key upside resistance line. The major global indices also appear to be returning to their short-term average. Hence, a slight our index pulls back to – forward averages cannot be ruled out “, Samco Securities Research
The trend continues to be bullish and traders are advised to initiate long positions only around dips to minimize the risk of capitalization at extreme levels. Immediate support on the downside now stands at 16,500, it added.