The ongoing US-Iran tension in West Asia, rising crude oil prices and US inflation data will decide the direction of the stock market this week. Apart from this, the attitude of foreign investors, movement of rupee against dollar and the 18th BRICS conference to be held in New Delhi on September 12-13 will also impact the domestic market. This week 8 factors can decide the direction of the market… 1. Increased tension between US-Iran Iran has claimed to have attacked an American ship trying to enter the Strait of Hormuz. A day before this, the US military had attacked three Iranian oil tankers in response to missile attacks on naval ships. This development has deepened the geopolitical crisis. 2. Rise in crude oil prices: Brent crude rose by 8% and WTI crude rose by more than 9% last week due to fears of supply disruption in the Strait of Hormuz. According to market experts, global bond yields have increased due to increased geopolitical risks in the energy market, which has created pressure on risk assets. 3. US Inflation Data: After strong US employment data, now all eyes are on US inflation data. Experts say that these figures will prove to be very important in shaping the policies of the US Federal Reserve and global market sentiment. 4. 11 new IPOs in the primary market. There will be a lot of activity in the primary market this week. Eleven main-board companies like Rentomojo, Karamtara Engineering and Manohar Electricals are set to raise a total of ₹7,055 crore through IPO. 5. Recovery and strengthening of Rupee: Indian Rupee has performed best against the US Dollar in the last five weeks. The rupee has received support from strong dollar inflow in the special schemes of the central bank, the movement of which will be kept an eye on by investors. 6. Continued selling by FIIs Foreign portfolio investors (FPIs) have pulled out ₹7,443 crore from the Indian stock market in the first week of September. According to experts, despite India’s GDP growth being 7.8% and the rupee being strong, FIIs are selling due to the 10-year bond yield in America being 4.78%. 7. Global Economic Events At the global level, along with US inflation data, the European Central Bank (ECB) meeting, Japan’s GDP growth data and China’s inflation data will play an important role in determining the market movement. 8. BRICS Summit The 18th BRICS Summit is going to be held on 12th and 13th September in New Delhi. The discussions on global trade and economic policies in this conference can affect the sentiments of the Indian markets. Last week Sensex had fallen by 1.2%. Last week Sensex and Nifty fell by 1.2%. The market has registered a decline for the fourth consecutive week. Whereas on the last trading day of last week i.e. Friday, September 4, the market remained bullish. Sensex closed 362 points higher at 76,515. There was a rise of 24 points in Nifty, it closed at the level of 23897. Knowledge Box: What is FII and FPI outflow? When Foreign Institutional Investors (FII) or Foreign Portfolio Investors (FPI) withdraw money from the stock market of a country by selling their shares, it is called outflow. This usually happens when interest rates or bond yields rise globally, causing investors to turn to safer alternatives.
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Expect movement in the stock market this week: 8 factors like US-Iran tension, crude oil price and inflation data will decide the movement of the market.
