Stock market expected to rise this week: From US unemployment rate to FII-DII flow, 6 factors will decide the market movement

The stock market may see a rise this week. The market will keep an eye on US unemployment rate, global economic data, domestic economic data, FII-DII flow and upcoming IPOs.

6 factors will determine the market movement this week:

1. US unemployment rate
At the global level, investors will keep an eye on US unemployment rate, non-farm payrolls, August monthly vehicle sales, weekly jobs data, JOLTS job openings and quits and July factory orders. All these data will affect the market sentiment.

All these data are very important before the Federal Reserve’s September policy meeting. According to experts, the central bank may announce the first rate cut. In July, the unemployment rate increased to 4.3% from 4.1% in the previous month.

2. Global economic data
Apart from the US economic data, PMI data of manufacturing and services of many developed and developing countries including Japan and China will be released this week.

Apart from this, the market will also keep an eye on the third estimate of Gross Domestic Product (GDP) of Europe for the June quarter.

3. Domestic economic data
The final data of HSBC Manufacturing and Services PMI for August will be released. HSBC Manufacturing data will come on September 2 and Services PMI data will come on September 4.

According to flash data, the manufacturing PMI declined to 57.9 in August from 58.1 in the previous month, while the services PMI rose to 60.4 from 60.3 during the same period.

Apart from this, data on bank loan and deposit growth for the 15-day period ending on August 23 as well as foreign exchange reserves for the week ending on August 30 will be released on September 6.

4. Initial Public Offering (IPO)

5. Auto Stocks
Auto stocks will be in focus early next week as automobile companies have started releasing their August sales figures from September 1.

6. FII-DII flow
The market will also keep an eye on the activities of Foreign Institutional Investors (FII) and Domestic Institutional Investors (DII). After remaining net sellers for the past several weeks, FIIs have now become net buyers in the cash segment of the Indian equity markets.

FIIs bought shares worth Rs 9,217 crore last week, bringing down the total outflow to Rs 21,369 crore in the current month. DIIs, on the other hand, bought shares worth Rs 1,198 crore last week and Rs 48,279 crore in the entire month of August.

Last week, the Sensex had gained 1,280 points
In the last trading week, the Sensex had gained 1,280 points (1.58%) and the Nifty had gained 413 points (1.66%). On the last trading day of the last week, i.e. Friday (August 30), the market had set a record.

Nifty index set a record of closing at 12 highs
In fact, the Nifty index, launched in 1996, set a record of closing higher for 12 consecutive days. Earlier in 2007, the Nifty had seen a continuous rise for 11 days. Whereas, in January 2015 and April 2014, there was a continuous rise for 10 days.

On Friday, the Sensex closed at 82,365
Nifty touched a record level of 25,268 in Friday’s trading. However, later it came down a bit and closed at 25,235 with a gain of 83 points. Sensex also touched a record level of 82,637, it closed at 82,365 with a gain of 231 points.