India's private sector activity slowed to a four-year low in July, with the HSBC Flash Purchasing Managers' Index (PMI) falling to 54.3, driven by weakened sales and output amidst renewed tensions in West Asia and rising inflationary pressures.
Indian stock market investors are closely monitoring crude oil prices, geopolitical developments in West Asia, and the implications of the US Sanctioning Russia and Iran Act, which could impose tariffs on countries, including India, that purchase Russian crude.
Indian benchmark indices Sensex and Nifty rebounded on Wednesday, driven by a decline in crude oil prices below USD 100 per barrel and optimism surrounding a potential de-escalation of the conflict in West Asia.
India's private sector activity saw a significant recovery in April, driven primarily by robust growth in manufacturing output and sales, following a three-year low in March attributed to the West Asia conflict.
Analysts predict that developments in West Asia and their impact on crude oil prices will heavily influence investor sentiment in the upcoming week. Global market trends, foreign investor activity, and rupee-dollar movement will also play a role.
Analysts predict that developments in US-Iran negotiations, fluctuations in crude oil prices, and key global economic data will be the primary drivers of gold and silver prices in the coming week, with a strong focus on talks in Switzerland.
Macroeconomic data, global geopolitical developments and rising concerns over AI-related disruptions are likely to dictate sentiment in the stock market next week, even as investors may remain cautious amid ongoing volatility, according to analysts.
Gold prices are likely to trade firm next week as traders await key economic data, including US inflation numbers, for fresh cues on interest rate outlook, while silver may remain volatile amid shifting risk sentiment and speculative activity, analysts said.
Trading activity of foreign investors and global trends will be the major driving factors for the equity markets in a holiday-shortened week ahead, according to analysts. Leading stock exchanges BSE and NSE have declared a trading holiday on November 20 for assembly elections in Maharashtra. Elections to the 288-member state legislative assembly will be held on November 20, and votes will be counted on November 23.
The index could be vulnerable to a bigger fall given the present market dynamics.
In the United States, economic data is likely to take a back seat next week.
Sensex ended at 26,272 up 125 points and Nifty ended at 7,831 up by 35 points.
Manufacturing of consumer goods, like food and liquor continued to improve in September.
In the offshore non-deliverable forwards, the one-month contract was at 62.26/36, while the three-month was at 62.83/93.
Shares of L&T Technology Services, an arm of engineering giant Larsen and Toubro, made a decent debut on the bourses
The 30-share Sensex ended down 30.30 points at 28,161.72 and the 50-share Nifty dipped 7.95 points at 8,543.
The 30-share Sensex ended down 538 points at 26,781 and 50-share Nifty ended down 152 points at 8,067.
The 30-share Sensex ended lower by 61 points at 29,122 mark and the 50-share Nifty slipped by 12 points to close at 8,797.
IT majors along with metal names Sesa Goa and Hindalco buck trend.
Sensex closed 63.82 points higher at 26,851.05 in Muhurat trading; Nifty rises 18.65 points to end at 8,014.55.
Tata Motors, ONGC, HDFC and TCS were the top gainers.
Sectors such as Auto, Banks, Capital Goods, FMCG, Metal, Oil & Gas and Power are trading marginally lower.
The 30-share Sensex ended higher by 46 points at 26,360 and the 50-share Nifty gained 16 points at 7,891.
