Global factors to determine market trend this week: Experts

Concerns over economic slowdown, muted earnings, crisis in the auto industry and global trade issues have been weighing on investor sentiment, experts said.

Illustration: Uttam Ghosh/Rediff.com

Amid lack of domestic triggers, equity markets would focus on global cues such as FPI investment trend, US-China trade talks and movement of oil and rupee this week, say experts.

Participants are also awaiting measures from the government to boost growth and revive consumer sentiment, they added.

"The result season has come to an end and majority of the companies delivered a disappointing quarter.

“With the slowdown looming on the economy, the companies could do very little to revive this quarter and are now mostly dependent on the government to boost sentiment and bring about a change at the grassroot level.

"Markets are likely to receive some boost this week due to government's impetus unless the trade war issue intensifies further," said Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote.

Ajit Mishra, vice president - research, Religare Broking Ltd, said, "The earnings season has ended and there are no fresh key domestic triggers. Hence, the focus will now shift to earnings recovery and investors will also take cues from global developments.

“Investors would keep a close watch on progress on US-China trade talks, movement of crude oil price and rupee/dollar."

Concerns over economic slowdown, muted earnings, crisis in the auto industry and global trade issues have been weighing on investor sentiment, experts said.

"This week, Nifty will be looking at global cues since there has been a lot of events that are going on.

“There are possible trade talks between US President Donald Trump and his Chinese counterpart which is expected in September," said Mustafa Nadeem, CEO, Epic Research.

According to Vinod Nair, head of research, Geojit Financial Services, "Global issues are not subsiding while the domestic market is floating on hopes of stimulus package."

During the past week, the Sensex lost 231.58 points, or 0.60 per cent.

"Global markets are seen ending in the red for the week on concerns of trade war.

“This is taking a toll on the global investor confidence. Indian markets also ended lower this week on disappointing earnings and selling by FIIs," said Sanjeev Zarbade, VP PCG Research, Kotak Securities.