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Published: August 26, 2024
Updated: August 26, 2024

Key Market Drivers to Watch: India and US GDP Data, FII Trends, and Fiscal Deficit

Indian Stock Market Outlook

The Indian stock market is expected to experience volatility in the coming week due to the futures and options (F&O) expiry on August 29, 2024. However, the market has shown a positive trend, gaining nearly one percent in the last week, amid positive global cues.

Macro Economic Factors to Watch

Investors will be keeping a close eye on the government budget value, foreign exchange reserves data, and Infrastructure Output data, all scheduled for release on August 30. The US GDP data and other economic indicators, such as the Dallas Fed Manufacturing Index and CB Consumer Confidence, will also be closely watched.

Nifty and Bank Nifty Outlook

Technical analysts predict a positive trend for Nifty, with a 'buy-on-dips' strategy recommended as long as it stays above 24,650. Bank Nifty is also expected to continue its bullish sentiment as long as it trades above 50,700.

FII Investment Trends

Foreign investors have been buying Indian stocks through the primary market while selling through the exchange. This divergent trend is attributed to the difference in valuations between the primary and secondary markets. FIIs have been sellers in financials and metals but buyers in telecom and healthcare.

The coming week will be crucial for the Indian stock market, with key data releases and FII trends guiding the market direction. Investors should keep a close eye on these factors to make informed decisions. The overall outlook remains positive, with the Fed's pivot and rate cutting cycle expected to provide further resilience to stock markets globally.