Stock Market update: Eyes on GDP Q1 2020 results
The direction of the stock markets this week will be determined by the data for the first quarter of the current financial year, infrastructure output data for the month of July and monthly vehicle sales data. All these together will also indicate about the state of the economy. Experts are saying that this week, investors will also keep an eye on the trend of global markets, news related to corona vaccine and the rate of corona virus infection.
The last week was a great one for the stock market. In the last week ended on August 28, the Sensex had recorded a gain of 1,032 points and the Nifty by 276 points. In this way, both these indices registered an increase of about 2 percent eachin the domestic stock market.
The National Statistics Office is going to release GDP figures for the first quarter of the current financial year and production data for basic industries on Monday, 31 August. Significantly, various rating agencies of India and abroad have predicted negative growth in the first quarter. Apparently the cause of this negative growth will be the lockdown implemented to prevent the spread of the corona virus epidemic and its infection.
Also, the monthly vehicle sales figures and manufacturing and services PMI figures are also going to be released this week. These figures may also affect the stock market to some extent. According to Vinod Nair, head of research, Geojit Financial Services, the uptrend in stock market is expected to continue this week. He said that there may be a slight fall in profit booking, but a long-term decline is unlikely.
Nirali Shah, senior research analyst at SAMCO Securities, says the stock market will be eyeing the vehicle sales figures this week. These figures can give broad information about the state of the economy. Apart from this, the market will also be watching the flow of foreign investment, crude oil and Indian rupee.
