After witnessing huge losses recently, stock markets may see a bounce back going ahead and would take cues from IIP data key scheduled to release later in the week. IIP data key would be bringing out report on movement of rupee, overseas investor’s investment style and global news. Stock market is in great distress due to which most of the stakeholders and the investment companies are facing the loss situation but experts feel that stock markets would bounce back in the due course.
Stock markets would take indications from IIP data slated to release later in the week which would highlight movement of rupee, overseas investors’ investment trend and global news. They can get the new change in the stock market and can see the change. This will activate the entire market and operate a new journey of the shares into the market. People are waiting for this change so that they can get to invest and get more returns.
On domestic front, they will be eyeing IIP data scheduled on September 11. Therefore there’s no major planned event or data except IIP. Investors are hoping for some positive surprise from the government and RBI, to help in stabilising the equity market. Global trend will also influence the move as participants are eyeing updates mainly from China and the US. From the global front, investors are eyeing monetary policy action by the Federal Reserve. The prospect of a higher US rate, which leads to risk aversion in riskier assets, has so far roiled the scene in emerging markets, which have run up massive losses of late.
Clumsy sentiments are running too high and therefore a bounce back is expected. All attention will start shifting from China to the US to take the signs on interest rates. The push in Indian equities recently, activated by global sell-off, offers an important buying opportunity for investors. On the weekly basis, there is the rating of the Sensex lost in which 1,190.48 points or 4.51 per cent and Nifty fell 346.90 points or 4.33 per cent. And this is the fourth straight weekly plunge for both the indices in the market.