The Indian equity markets are set to commence operations on September 25 as investors will be keeping an eye on the global market trend, FII action and the happenings in the domestic economy. It is expected that the Nifty 50 and Sensex will continue to remain sensitive to trends in the global market, currency levels, and sentiments.
The cues from the global market will continue to remain an important parameter for the domestic stock markets. The moves in the US market, Asian indices and the trends in global bond yields could determine the movement of the market at the time of opening. The performance of the stocks from the technology and financial sectors will also have an impact on the overall market indices.
The FII activity will be another important parameter. The foreign investors have been under observation due to the fact that the movement of these investors can have an effect on market liquidity and sentiment.
The rupee’s performance relative to the US dollar will be of interest as well. A weakened or strengthened domestic currency will imply different scenarios for industries like information technology, oil and gas, and stocks of firms with a large international presence.
Beside international elements, investors will pay attention to news related to the price of crude oil, which is still important for India as the country imports large quantities of crude. Fluctuations in oil prices may have an impact on the inflation expectations, cost of businesses and foreign trade balance of the country.
Other elements that traders and investors will take into account will include local economic indicators, stock specific news and industry news during the trading session. Banking, IT, auto, energy and metal stocks may show some volatility.
When the trading starts, investors will be looking at how the external factors and institutional participation will support market stability.
