Monday, September 05, 2016

THE WEEK AHEAD

Macro economic data, monsoon rains and global cues to dictate trend


The outcome of the monthly survey on India's services sector, trend in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of rupee against the dollar and crude oil price movement will dictate market trend in the truncated trading week ahead. India's stock market remains closed on Monday, 5 September 2016 on account of Ganesh Chaturthi.

Indian equities will on Tuesday, 6 September 2016, react to cues from its global peers in Monday's (5 September 2016) trading. Global stock markets will on Monday react to the outcome of the crucial US nonfarm-payroll data for August 2016 due to release on Friday, 2 September 2016. Federal Reserve Chairwoman Janet Yellen had recently said that an improving US economy had strengthened the case for a rate increase. High US interest rates would pull money out of emerging markets and redirect it to the US.

Among corporate news, state-run coal mining giant Coal India is scheduled to announce Q1 June 2016 results on Friday, 9 September 2016. Key stocks like Hindalco Industries, Grasim Industries, and Tata Power turn ex-dividend in the coming week.

The performance of the monsoon rains will be monitored. The India Meteorological Department (IMD) said that for the country as a whole, cumulative rainfall during this year's monsoon so far (till 1 September 2016) was 2% below the long period average (LPA).

On the macro front, the Nikkei India services purchasing managers' index (PMI) data for the month of August 2016 is due on Monday, 5 September 2016.

Among global cues, Caixin China services PMI data for August 2016 is due on Monday, 5 September 2016. China trade balance data for the last month is scheduled to release on Thursday, 8 September 2016. On the same day, the European Central Bank's (ECB) monetary policy statement and press conference is scheduled. Also, the US initial jobless claims for the week ended 2 September 2016 is due on the same day.

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