Last week brought relief to the domestic stock market and the trend of decline that was going on for two consecutive weeks was broken. Markets across the world heaved a sigh of relief last week as the fear of recession in America subsided. Now, even during the week starting from Monday, 19 August, investors will keep their eyes on America.
There was a good rise on the last day of the week
The domestic stock market closed last week with a great rise on Friday. On the last day of the week, August 16, the BSE Sensex closed at 80,436.84 points with a great rise of 1,330.96 points (1.68%). At the same time, the NSE Nifty index closed at 24,541.15 points with a great gain of 397.40 points (1.65%).
Just so low from a lifetime high
The major domestic indices were also in profit for the entire week. The Sensex was in profit of 696.11 points (0.87%) and Nifty50 was in profit of 152.05 points (0.62%) for the entire week. In this way, the trend of decline in the domestic stock market for the last two weeks was broken. However, both the major domestic stock indices are still down by more than 2% compared to their lifetime high level.
Support expected from US market
Talking about the coming week, the signals that will affect the market the most are going to come from America. The details of the meeting of the Open Market Committee (FOMC) of the Central Bank Federal Reserve in America are going to be released. The minutes of the meeting will give clear indications of when the Federal Reserve is planning to reduce interest rates. It is believed that the US Fed may start cutting rates from next month. At the same time, the global market sentiment is expected to remain strong during this week as the fear of recession in the US economy has eased.
These challenges ahead for the Indian market
The Indian market may also face some challenges in the coming days. Foreign portfolio investors are selling heavily in the month of August and have sold Indian shares worth more than Rs 21 thousand crore so far. If this trend continues, there may be some pressure. PMI data of service and manufacturing are coming during the week. At the same time, activities in the market are going to remain brisk due to 7 new IPOs and listing of 5 shares.
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Also read: IPOs worth Rs 22,000 crores in queue, 4 will be launched this week, 5 new shares will also hit the market
