Global Tips: Fed Lowers Signal Between Major Factors Pushing Indian Stocks Next Week
For the Indian stock market, next week will be crucial as global developments, U.S. interest rate signals, industrial output data and foreign investment trends are expected to drive sentiment. Fed Chairman Jerome Powell hinted at a speech at Jackson Hole workshop that could reduce interest rates.
This sparked a strong rally in the U.S. market at the last trade, with analysts saying positive momentum could spill into Indian stocks when the market opens on Monday.
Experts say the U.S. lowered tax rates could help reduce the outflow of foreign institutional investors (FIIS) from India.
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Lower U.S. interest rates often weaken bond yields and the dollar, making emerging markets like India more attractive to foreign investors.
Last week, FII sold Rs 155.951 crore worth of shares in the Indian market, while Domestic Institutional Investors (DIIS) are net buyers with a purchase value of Rs 103,882.3 crore.
In addition to this, the Indian Industrial Production Index (IIP) data will be released next week, providing insights into the performance of the country’s industrial sector. These figures are closely followed by investors and directly affect market sentiment.
The strong record of the Indian market ended last week. Nifty rose 238.80 points, or 0.97%, to 24,870.10, while Sensex scored 709.19 points, or 0.88%, to close at 81,306.85.
The rally is broad-based and sees gains in large, medium and small stocks. The Nifty Midcap 100 jumped 1.99% or 1,125.50 points to 57,629.75, while the Nifty SmallCap 100 soared 2.12% or 372.05 points to 17,919.50.
In the sector index, Nifty Auto became the highest Gainer last week, climbing 5.02%. Real estate rose 3.45%, consumption 3.01%, fmcg 1.98%, IT 1.74% and metal 1.73%.
Sudeep Shah, head of technical research and derivatives at SBI Securities, said the recent rally was largely the prospect of upgrading India by S&P Global Rating, which has boosted investor confidence.
He added that Prime Minister Narendra Modi announced the upcoming GST reform until Diwali further strengthened market sentiment.
