Macro data, key global factors for markets in the shortened holiday weeks: experts
New Delhi, September 1 () Macroeconomic data points and global trends mainly from the US-China trade conflict would boost equity markets in a shortened holiday week, analysts said.
Stock markets will be closed on Monday by 'Ganesh Chaturthi'.
Official data published after market hours on Friday showed that India's GDP growth fell to a minimum of more than six years from 5 percent in the June 2019-2020 quarter, affected by a sharp slowdown in manufacturing production and moderate activity in the agricultural sector.
The continuation of the slowdown in GDP growth was expected, but 5 percent growth in the first quarter is worse than expected ... GDP growth figures will increase in the third and fourth quarter benefiting from the low base from the previous fiscal year.
In addition, rate cuts by the RBI will act strongly in the third and fourth quarters as monetary policy impacts with a delay of 2 to 3 quarters. We need structural reforms such as labor and land market reforms to stimulate and sustain growth, said VK Vijayakumar Chief Investment Strategist at Geojit Financial Services.
Next week will be mediocre and there will be a shortage of triggers from the corporate side, therefore, international triggers could be the driving factor, said Jimeet Modi, Founder and CEO, SAMCO Securities u0026 StockNote.
Meanwhile, the government announced on Friday a mega plan to merge 10 public sector banks into four as part of plans to create smaller and stronger lenders worldwide, as it seeks to boost economic growth.
Deepak Jasani, head of retail stock research at HDFC, said: The announcement of PSU's bank consolidation is welcome and a good first step towards sustainably turning over PSU banks. The government has accelerated the pace of reform announcements in recent weeks driven by the economic slowdown and emboldened by the recent transfer of RBI funds.
According to Anusha Raheja, a BFSI research analyst at LKP Securities, the announcement of the merger would improve the Indian banking landscape. He added that several other governance reforms announced regarding the strengthening of the PSU meetings will address their key inherited problems and put them on a par with their private peers.
Markets would also expect PMI data for the manufacturing and services sectors, which would influence commercial sentiment, analysts added.
In addition, automatic counters can see more activity after the announcement of monthly sales data.
The country's largest automaker, Maruti Suzuki India, reported a 32.7 percent decrease in sales to 1.06,413 units in August on Sunday, while Mahindra and Mahindra reported a 25 percent drop.
Investors would also control other key factors, such as the rupee movement, crude oil and the investment trend by foreign investors.
On the global front, participants would follow developments related to the commercial tiff between the United States and China. During the past week, Sensex advanced 631.63 points or 1.72 percent. SUM ABM ABM