Eurozone GDP, India Forex Reserve Data, Manufacturing PMI, Five IPOs: The Week Ahead
Here's everything that you need to know about before going into trade next week
Indian equity markets will be influenced by the gross domestic product figures of the Eurozone, while the Reserve Bank of India is set to release India's foreign exchange reserves data.
US Federal Reserve Governor Christopher Waller and New York Fed President John Williams are scheduled to speak this week.
IPOs And Key Levels To Watch
During the week, the primary markets will be focused on one main board issue and public offerings bought out by four small and medium-sized firms. The key offering of Gala Precision Engineering will be available for subscription.
Nifty is showing the RSI in a bullish crossover, indicating strong price momentum, according to Rupak De, senior technical analyst at LKP Securities.
"The Nifty moved up to achieve its highest-ever closing following a volatile session. Moreover, the index has undergone a brief consolidation breakout," he said.
"In the short term, the index could move towards 25,300, with support on the lower end placed at 25,000," he said.
Domestic Cues
The Nikkei S&P Global Manufacturing Purchasing Managers' Index is forecasted at 57.9 on Sept. 2, slightly below the previous reading of 58.1. A stronger than expected PMI would be bullish for the rupee, while a weaker result could be bearish.
The Nikkei Services PMI, out on Sept. 4, is anticipated to show a slight increase to 60.4 from 60.3. A higher reading would be positive for the rupee. Additionally, the Reserve Bank of India will release M3 Money Supply data, with the previous figure at 10.3%. A higher reading than expected would be supportive for the local currency.
Key reports on Sept. 6 include bank loan growth, previously at 13.6%, and India's USD forex reserves data. Foreign exchange reserves serve as a safeguard for countries facing financial crises. They can be utilised to intervene in the currency market to influence or stabilise the exchange rate.
Both higher than expected results would be bullish for the rupee, while lower readings could be negative.
Global Cues
US markets are closed for Labour Day on Sept. 2, whereas the Eurozone will release August Manufacturing PMI, forecasted at 45.6 down from 45.8, and the UK’s Manufacturing PMI is expected to rise to 52.5 from 52.1.
The US will report August Manufacturing PMI on Sept. 3, with a forecast of 48.0, down from 49.6. Additionally, the ISM Manufacturing Employment and ISM Manufacturing PMI are projected at 47.8, up from 46.8.
The Eurozone will publish Producer Price Index figures for July on Sept. 4, covering both year-on-year and month-on-month changes.
The US will release Initial Jobless Claims and Services PMI on Sept. 5. Eurozone GDP figures are expected to be an unchanged 0.3% quarter-on-quarter, and 0.6% year-on-year, up from 0.4%. The US unemployment rate is forecast to fall to 4.2% from 4.3%. Governor Waller and Fed member Williams are scheduled to speak.
Primary Market Action
With one mainboard and four SME public issues set to open for bids next week, the primary markets will remain in focus throughout the week. The IPO from Gala Precision Engineering will open for subscriptions on the mainboard space.
Jeyyam Global Foods and My Mudra Fincorp are among those receiving bids in the SME segment during the week.
Shares of Mach Conferences and Events, and Namo eWaste Management will list on the exchanges on Sept. 11.
Corporate Action Ahead
Bondada Engineering, Metro Brands, and NBCC (India) are the big names that have record dates for their interim or final dividends in the coming week.
