Macroeconomic triggers and Infy to give direction to markets

In contrary to today's trade, both the benchmark indices have gained during the past four consecutive trading sessions. Going ahead, there are a few macro economic factors which may affect the market movement in the short term.

Aug 29, 2017 05:08 IST India Infoline News Service

Business People
Major indices in the market, Nifty and Sensex were trading in the negative territory in the morning hours on Tuesday. In contrary to today's trade, both the benchmark indices have gained during the past four consecutive trading sessions. Going ahead, there are a few macro economic factors which may affect the market movement in the short term.
 
Following are the top triggers that may impact the markets during this week:
 
Derivative contracts expiry:
The derivative contracts of August series are going to expire in this week on August 31, 2017. Generally, the traders start to rollover their positions in futures market before three to four trading sessions of expiry. As of August 28, 2017, Nifty futures witnessed rollover of 17.54% as compared to 28.37% in the previous derivatives contract series. It signals some weakness for the 50-stock index in the short-term.
 
Narayana Murthy Concall:
Infosys founder, NR Narayana Murthy will host a conference call for Institutional investors on Tuesday, August 29 at 1830 hours. The company recently informed the exchange that some of the members of the promoters group have expressed their intent to participate in the proposed share buyback. The stock has recovered marginally from its recent low after Nandan Nilekani was appointed to the board. Infosys is one of the heavyweights on the Nifty, affecting the index movement significantly.
 
Fiscal deficit and GDP data:
Fiscal deficit data for the month of July and GDP data for the first quarter of FY18 will be released by the government on Thursday, August 31. Data released by the Controller General of Accounts (CAG) showed that during April-June, total expenditure rose to 30.3% of the full-year target of Rs 21.5 trillion, against 25.9% during the same period in the previous fiscal year.
 
Manufacturing PMI:
The index for the month of July has hit its 8-year low at 47.9 which also marked the first deterioration in business conditions in 2017. It would be interesting to watch out the performance of manufacturing sector in the country after the implementation of the unified tax regime, Goods and Services Tax (GST). The PMI index for the month of August is scheduled to published on September 1, 2017.

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