The Indian stock market is poised for an eventful week as investors keep a close eye on various triggers that may affect market movements. Some of the factors that could influence the market include the outcome of the US Federal Reserve’s policy meeting, foreign fund inflow, crude oil prices, and global cues.
Last week, the indices, Sensex and Nifty, closed at their fresh lifetime highs, driven by a rally in global markets and renewed foreign capital inflows. On Friday, the Sensex surged 408.23 points or 0.60 percent to touch a new all-time intra-day peak of 67,927.23, while the Nifty50 reached an all-time intraday high of 20,223. Both indices experienced a weekly gain of almost 2 percent.
However, it should be noted that foreign portfolio investors (FPIs) continued to sell their holdings in September, resulting in a net selling trend. This selling streak can be attributed to rising US bond yields and a stronger dollar.
Moving on to specific news, on September 18, the central government announced an increase in the windfall tax on the sale of domestic crude oil. The tax has been raised from ₹6,700 per tonne to ₹10,000 per tonne. This change will be implemented from September 16 onwards. Additionally, special additional excise duty (SAED) on diesel exports will be reduced from ₹6 per litre to ₹5.50 per litre, and the duty on jet fuel exports will see a reduction from ₹4 per litre to ₹3.5 per litre. The export duty on petrol will remain unchanged at zero. These changes are expected to have an impact on the oil sector.
In another development, HDFC Bank is set to receive passive inflows of approximately $650 million as part of the FTSE’s semi-annual index review. This adjustment is scheduled to take effect from September 18. The bank’s shares showed strong performance on Friday, gaining over 1 percent and reaching an intraday high of ₹1,670 on the National Stock Exchange (NSE). This uptick in stock price was due to significant block deals worth ₹4,500 crore, driven by passive inflows resulting from the FTSE indices adjustment.
Furthermore, the initial public offering (IPO) of Jupiter Life Line Hospitals Limited is scheduled to be listed on September 18. Market analysts predict that the IPO listing price may exceed the upper price band of ₹735 per equity share. They have suggested that in a bearish scenario, the listing price could be around ₹950 per share, while in a bullish scenario, it may even reach four digits.
On a global note, Wall Street closed lower on Friday, resulting in the S&P 500 index’s second consecutive losing week. The benchmark index fell 1.2 percent, while the Dow Jones Industrial Average dropped 0.8 percent and the Nasdaq composite gave back 1.6 percent. Economic updates and the upcoming Federal Reserve interest rate policy meeting have been closely watched by investors.
All in all, investors need to stay cautious and keep track of these market triggers to make informed decisions. The outcome of the US Federal Reserve policy meeting, foreign fund inflow, crude oil prices, and global cues will play a vital role in shaping the market this week.