Inflation data, factory output to drive Indian markets this week

The index of industrial production for the month of July will be announced Wednesday, as will the inflation rate based on the Consumer Price Index for August.

Published: 10th September 2018 01:07 AM  |   Last Updated: 10th September 2018 05:51 AM   |  A+A-

sensex, stock exchange, bombay, BSE, Nifty,

File Image of BSE Sensex. (File | Reuters )

By Express News Service

NEW DELHI: Indian stock markets, which have been clawing their way back up the charts over the last few days, are expected to be driven by the release of several important macroeconomic indicators including the latest inflation and factory output data. The bourses, however, will remain closed on Thursday on account of Ganesh Chaturthi.

As for the indicators set to be published, the index of industrial production for the month of July will be announced Wednesday, as will the inflation rate based on the Consumer Price Index (CPI) for August. Wholesale Price Index-based inflation data is expected to be out Friday. On the international front, the release of US’ most recent jobs data is also expected to give cues to the markets. Inflation data, in particular, is expected to influence investor sentiment since high crude prices have already resulted in record-breaking fuel rates at the pumps.

If inflation data shows the effect starting to bleed into other segments like food and other consumables, experts expect it to put pressure on the RBI to hike rates again. Analysts also say the direction the rupee takes will strongly affect investor sentiment. It had been a combination of the rupee plunging and crude oil prices rising that had resulted in a drop in the markets last week. Market participants are expected to keep an eye on the progression of the US-China trade negotiations. Both the US and China have escalated rhetoric over the last few days.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

facebook twitter whatsapp