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Stock markets are likely to take cues from a raft of data, including June quarter current account deficit, private surveys related to business activity and monthly sales of automobile and cement firms, during the coming week.
While benchmark indices may remain lacklustre as the September quarter earnings would start only from the second week of October, global developments like US debt ceiling issue and the European Central Bank’s interest rate decision (October 2) may also be tracked closely.
Sensex, which closed at a three-week low of 19,727.27 on Friday, would be volatile ahead of RBI unveiling June quarter current account deficit (CAD) on Monday (September 30). CAD is believed to be one of the chief reasons behind the fall in the rupee in recent months.
Monthly sales data
On Tuesday, auto and cement stocks will be in focus as the companies from these two sectors will start announcing their monthly sales volume data for September 2013.
Besides, market economics will unveil September 2013 HSBC India Manufacturing Purchasing Managers’ Index (PMI), which captures the business activity of factories, on October 1.
Domestic markets would be closed on October 2 on account of Gandhi Jayanti.
Services sector performance
Domestic stock market is likely to be influenced by the result of a monthly survey on the performance of India’s services sector for September 2013 on October 4 (Friday).
“Going ahead, there are no major macro events domestically. Quarterly results will start pouring in two weeks’ time. Going by the macro trends, results of domestically oriented companies are expected to remain subdued,” Dipen Shah, Head Private Client Group Research, Kotak Securities, said.
On the weekly chart, Nifty is showing bearish trend in the near-term and 5,800 shall be the crucial deciding level in the coming sessions, Rakesh Goyal, Senior Vice-President, Bonanza Portfolio, said.
Rupee Vs dollar
The movement of rupee versus dollar, crude oil prices and the investment trends of overseas investors would also remain as the key factor for further market direction, experts said.
The rupee had closed at 62.51 against the dollar on Friday. The local currency had collapsed to a life-time low of 68.85 against the dollar last month but has since then shows some signs of strength.
“Markets will also watch closely the developments on the US debt ceiling issue. While it is widely expected that more time will be borrowed to discuss the spending cuts, concerns may linger on the potential impact of any spending cuts on the US economy,” Shah of Kotak Securities said.
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