Kochi ∙ The Indian market continued to rally last week on the back of the American market’s boom and good results. The Indian market, which advanced by three percent in the last week, gained more than eight percent in July.
In the last week, financial, metal and IT sectors have improved along with banking, infra, cement and realty sectors, which have been favorable for the Indian market. Nifty, which has surged to 17,158 points, is looking for support at 16,800 points. Along with IT, financial, realty, infra, cement and capital goods stocks, banking and pharma sectors are also expected to advance. Budding portfolio investment consultant Abhilash Puravanthurth assesses the market’s prospects and prospects for the new week.
∙ Unexpected American results
Last week’s US tech results boosted global market confidence, giving the market its best run of the year. Alpha Bet and Microsoft’s results gave global markets hope that stronger results from Tesla and Apple and Amazon’s revenue growth could draw retail investors back into the market. Only the results of social media stocks disappointed the market. The US market is expecting better results next week as well.
∙ Taiwan and Pelosi
Tesla, which is advancing on the back of the stock split with good results, and Apple, which is preparing to introduce new products in September after good results, will determine the course of the American market. The PMI data of countries such as America, Eurozone, China, Japan, Korea and India which will be released tomorrow is also crucial.
Also important for the market are jobs data, US non-farm payrolls and unemployment figures due out on Friday. Taiwan is again drawing international attention by opening a new port of call between the United States and China. Nancy Pelosi’s trip to Asia creates concern for markets.
∙ American depression
For the second consecutive quarter, economic observers are considering the decline of the American economy as a sign of recession. Market expectations see US domestic production shrink by just 0.9% in the last quarter after experiencing a 1.6% growth slowdown in the first quarter of this year. The fact that the Fed Reserve can only consider raising rates more cautiously in September is also positive for the market.
The Fed, which raised rates by 75 basis points to 2.50 percent last week, is expected to raise rates by 0.50 percent in September and then by only 0.25 percent later, with Fed policies expected to become more market-friendly again as inflation eases. However, the US Personal Consumption Expenditure Index (PIC) rose to a 40-year high, suggesting that inflation will continue to rise.
∙ Purchase of foreign funds
The rise in the dollar has reduced the exchange value of the rupee and the new opportunities in the Indian market are believed to be the reasons for the decline in the sale of foreign funds. The possibility of foreign funds taking profits at higher rates should also be considered.
∙ OPEC meeting
The OPEC Plus meeting on August 3 may result in only a small increase in crude oil production in September. It is also believed that Saudi Arabia may increase oil prices. Crude oil prices may be restrained by the increasing number of US rigs and the discovery of new shale oil and gas reserves in China.
gold
The threat of a recession and falling bond yields favored gold last week. The international gold price, which reached 1766 dollars, is expecting selling pressure at 1800 dollars.
English Summary : Share market analysis