Positive global developments are expected to weigh in on the Indian stock markets this week. There are signs of the Sino-American trade war ending soon. The Indian Government is expected to announce a few sops for the ailing auto sector. The sales of the auto industry have hit rock bottom.
The SGX Nifty opened on the positive side yesterday and hinted at a steady opening for the benchmark Indian indices. Indian equity and forex markets are closed today on the event of Muharram. With three more working days left in the week, the following factors might significantly affect the Indian markets:
1) The Indian capital market investors are awaiting the announcement of prominent figures such as manufacturing output, industrial productivity, and rate of inflation/deflation. This data is set to be announced on Thursday, and the market sentiment will majorly depend on this announcement. Any adverse development is set to extend the bearish trend in the Indian markets.
2) The Finance Minister is expected to announce the growth boosters for the auto sectors this week. The government might reduce the GST rate and come up with relief measures to revive the severely affected industry. On the back of this, the stocks of auto sectors might shoot up.
3) Real estate and infra sector would be in focus. The government had earlier said that a task force had been set up to come up with infrastructure projects of worth Rs 100 lakh crore by 2025. This is an integral part of the Prime Minister’s ambition of taking the Indian economy towards the mark of USD 5 trillion.
4) Some positive developments are expected to ease the trade tension between the US and China this week. This is a big booster for the market sentiment and can expect FPI inflow. Also, the investors are expected to move their investments from the debt segment to the equity front.
5) The data released by the US Government will always play a significant factor in influencing market sentiment. As per the latest data released last week, the US job growth has slumped in August. Weaker economic data will result in rate cuts around the globe and markets are expected to rally on the back of this.