Nifty 172 points away from peak. 5 factors for stock market investors to track this week

economictimes.indiatimes.com:

global cues, Sensex and Nifty gained nearly 2% last week with all sectors participating in the broad-based rally which was backed by strong economic outlook and macroeconomic data such as robust GDP and PMI figures.

Nifty is now just 172 points away from the all-time high of 19,992, made on July 20 and analysts are now eyeing 20,000 level this week itself.

«In the broad market, mid- and small-cap stocks attracted strong buying interest, even though their valuations were relatively high. Moreover, heightened order inflows made sectors like infrastructure and realty particularly attractive to investors during the week,» said Vinod Nair, Head of Research at Geojit Financial services.


Here are top 5 factors that may sway the market mood in the week:

Adani Group stocks market cap crosses Rs 11 lakh crore

FII flow
After buying non-stop in the last 6 months, FIIs have sold Indian stocks worth Rs 4,203 crore in September so far amid rising US bond yields and the uptrend in the dollar index. Sharp currency weakness in China and Japan against the dollar also weighed heavily on the local currency leading to foreign fund outflows.

If the US treasury yields continue to rise and other currencies falter against the US dollar further, foreign fund inflows may remain choppy and overseas investors could exit emerging markets, including India, said Shrikant Chouhan of Kotak Securities.

Crude oil
Brent crude prices are now hovering around the $90 a barrel mark after gaining about 5% in the week after worries about tight oil supplies after Saudi Arabia and Russia extended supply cuts. Oil-sensitive stocks may remain in focus in the week ahead.

Macro data

US stock market: S&P 500 closes up slightly ahead