Inflation, rupee, results to steer Indian equities

mumbai — Key macro-economic inflation data points, combined with the last of first quarter earning results and the direction of foreign fund flows, are expected to drive the Indian equity indices next week.

Analysts opined that the movement of the Indian rupee against the US dollar as welll as global crude oil price volatility and high stock valuations will also affect investor sentiments.

“The domestic markets are likely to witness another eventful week, with more quarterly earnings, trends in global markets, investment by foreign and domestic investors,” said SMC Investments & Advisors chairman and managing director D.K. Aggarwal.

In terms of global cues, Delta Global Partners founder and principal partner Devendra Nevgi told

IANS: “The risk emanating from a potential Turkey-centred contagion spreading to EU banks will dominate the risk sentiment in the emerging markets and Indian markets [this] week.”

According to Anindya Banerjee, deputy vice-president for currency and interest rates with Kotak Securities, the Indian rupee is expected to range from 68.70 to 69.30 against a US dollar in the coming week.

“We should be prepared for a devaluation. However, lower crude oil prices and the Reserve Bank of India’s invention in defending the Indian rupee against the dollar will mitigate the magnitude of devaluation,” said Banerjee. On the currency front, the rupee closed at 68.83 on August 10, weakened by 22 paise from its previous week’s close of 68.61 per greenback.

Besides the rupee, foreign fund inflows into the country might get impacted due to “global risk aversion”.