Get ready for a week that could set the tone for your investments. The Indian stock market is heading into a crucial period, with a mix of domestic and global events likely to be the key drivers.
All eyes will be on the inflation data set to be released by the government on Thursday, September 12th. This number, which hit a low of 1.55% in July, is a major factor the Reserve Bank of India considers when setting interest rates, making it a big deal for market sentiment.
Adding to the mix, a major development on global trade is brewing. Media reports indicate US President Donald Trump has signed an order granting exemptions on tariffs for key materials like nickel, gold, and certain pharmaceuticals and chemicals. This move, starting Monday, could have positive ripple effects on international trade and related sectors.
Furthermore, important economic data from the US, including their own inflation and jobless claims figures, will be closely watched by investors worldwide, as these often influence the flow of foreign money into markets like India.
This comes after a strong week for Indian equities. The Sensex and Nifty both posted healthy gains of over 1%. The rally was broad-based, with sectors like Auto, Metal, and Energy leading the charge as top gainers. The only sector that bucked the trend was IT, which saw a slight dip.
However, a point of concern remains the activity of Foreign Institutional Investors (FIIs). They continued to be net sellers last week, pulling out over Rs 5,600 crore from the market. This selling pressure was counterbalanced by strong buying from Domestic Institutional Investors (DIIs), who infused a robust Rs 13,444 crore.
So, what’s next for the market? Analysts suggest the Nifty is showing a bullish bias but is currently stuck in a consolidation phase. Experts point to a key resistance zone between 24,950–25,000. A decisive break above the 25,000 level could be the trigger for a fresh upward move, potentially pushing the index towards 25,250 and even 25,400. On the downside, support is expected in the 24,500-24,550 range.
