The market recovered during the week ending September 20, setting new records. US GDP The Federal Reserve cut interest rates by 50 basis points, its first cut since March 2020, spurring growth. Despite that, Bank of Japan and Bank of England interest rates were kept constant. Due to Fed actions and high interest from overseas investors, markets started the week cautiously but remained hot during the week 

Despite the underperformance of the broader market, experts predict the positive trend in the major indices will continue. Manufacturing & Services PMI data, Federal Reserve Chairman Jerome Powell’s upcoming speech, and America. GDP figures are important things to keep an eye on. Additionally, the September futures and options contract could expire, potentially increasing volatility.

The BSE Sensex closed 2% higher at 84,544, while the Nifty 50 rose 1.71% to 25,791. On the other hand, midcap and small cap indices saw distinct gains; The former increased by 0.3% while the latter decreased by 0.9%. Even as the IT, pharmaceutical and oil and gas sectors contracted slightly, buying activity was strong in banking, finance, auto, FMCG and real estate companies 

Siddharth Khemka of the Motilal Oswal Finance Department estimates that the increase will continue due to higher inflow of foreign capital and stronger domestic economic indicators. Vinod Nair of Jiojit Financial Services observed a shift from outsourcing sectors such as IT and pharmaceuticals to larger sectors such as finance, real estate and consumers thanks to the US. because of easy money

With 11 new public issues scheduledGlobally, investors’ focus will be on U.S. GDP growth statistics and Powell’s speech on September 26, where more details about potential rate decreases and economic trends are anticipated. Experts anticipate a gentle landing for the US economy, which gives them hope. Along with developments on the foreign currency reserve, domestic markets will also be watching India’s Manufacturing and Services PMI flash data. 

In September, after the Fed lowered interest rates, foreign institutional investors (FIIs) made a significant market contribution, contributing more than ₹14,000 crore in a single day. The yields on US bonds and oil prices changed as well; the latter increased in response to tensions in the Middle East. Brent crude saw a weekly increase of almost 4% to close at $74.49 per barrel. 

 to launch the following week, the IPO market is booming. September 23 marks the opening of Manba Finance’s ₹151-crore IPO, while nine other IPOs will be launching in the SME sector. 

Technically speaking, the Nifty 50 emerged victorious after a three-week consolidation phase, suggesting more increases. Analysts expect that the index may cross the crucial 26,000 barrier, with 25,500 and 25,300 acting as support points. Meanwhile, low volatility leads to high growth rates. The volatility index or India VIX closed at 12.79, up 1.91% the previous day.

While market players wait for more clarity on global economic models, all eyes are now on Powell’s speech and the US. on financial statements.

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