Share Market: The Indian stock market benchmark index Sensex and Nifty have been performing negatively for six consecutive weeks. Now everyone is looking at the business in the stock market in the week. On Friday, August 8, the two major indices on the last trading day of last week recorded a decline of about 1 percent. The BSE midcap and smallcap index also saw a decline of 1.3 percent and about 2 percent respectively.
In the past, the biggest reason for the decline in the stock market is the tariff imposed by US President Donald Trump. Trump has imposed 50 percent tariff on import of Indian goods in the US. Not only this, Trump’s constant stance towards India is the biggest concern. Its effect will be seen on the stock market during the coming week. Apart from this, the data on inflation and the selling of shares will also prove to be helpful in determining the direction of the market.
Let us talk about those 5 important factors, whose effect can be seen on the stock market next week.
What ahead on the tariff now?
Trump has imposed a huge tariff of 50 percent on the import of Indian goods. It is also said that America’s trade talks with India will remain postponed until the current tariff dispute is resolved. This unpredictable and aggressive attitude of Trump is a matter of serious concern for the Indian stock market. Some experts estimate that the current tariff will reduce India’s current GDP growth by 1 percent. India is the highest than other Asian countries like Bangladesh, Vietnam and China. It is expected that the negotiations between the two countries will start early and positive results will be revealed for India and finally the tariff will reach 15-25 percent. Investors will keep a close watch on this.
Inflation figures in India and America
In the coming weeks, investors will be closely monitored by the Consumer Price Index (CPI) based inflation figures of India and America. India and America will release their July CPI inflation figures on Tuesday, August 12. India’s July WPI inflation figures will be released on Thursday. It is expected that inflation in India in July will be reduced to 1.8 percent from 2.10 percent last month. At the same time, the American CPI can remain 2.8 percent in July compared to 2.7 percent of June.
Inflation is expected to remain normal in India in FY 2026. After the August MPC meeting, the Reserve Bank of India has reduced its forecast of CPI inflation for FY 2026 from 3.7 % to 3.1 %. However, it is feared that Trump’s tariff policy does not increase inflation in America. This will reduce the speed of growth, which can create a slowdown in the world’s largest economy. If inflation increases, the possibilities of cutting interest rates by the US Federal Reserve will decrease further, which will not be good for emerging markets like India.
Trump and Putin meet
The US President and his Russian counterpart Vladimir Putin will meet in Alaska on Friday, August 15. It is being discussed worldwide. It may be that this will stop the process of Russian attacks in Ukraine. Kremlin’s advisor Yuri Ushakov said that during the meeting, both would discuss the options for peaceful solutions on the issue of Ukraine.
How will FPI be stressed?
Foreign portfolio investors (FPIs) have been continuously selling Indian shares since July. In the month of July, the FPI sold Indian shares worth Rs 47,666.68 crore in the cash segment, while in August they have sold Indian shares worth 14,018.87 crore. However, Indian shares worth 1,932.81 crore were also purchased in the cash segment on Friday, August 8. The market move will also depend to a large extent on what is the attitude of FPI in the coming time.
Weak results of the first quarter
This week also the results of some big companies are coming for the June quarter, which will be the focus of investors. According to BSE, more than 2,000 companies will declare their June quarter results in the coming week. These include major companies like Bajaj Consumer Care, Ashok Leyland, ONGC, IOC, Hindalco Industries, BPCL and Hindustan Copper.
Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)
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