Market Ahead, September 21: Top factors that could guide markets this week

The equity benchmarks remained in a consolidation mode last week and ended little changed and looking at the lack of fresh domestic triggers, this week shouldn't be any different. Investors will continue on focus on global cues, India-China tensions, Covid-19 trends, and stock-specific developments. Although, the expiry of September series derivative contracts is likely to inject some volatility as investors square off or roll over their positions. 

Globally, PMI for the US, the UK, and the Eurozone are scheduled to be released this week. Back home, Brent crude oil, foreign fund flow, and the rupee would also be tracked by investors.

On the geo-political front, investors will keep a close watch on the India-China border issue. The sixth round of Corps Commander talks between the two armies is scheduled to be held today with a sole focus on the implementation of a five-point agreement reached between the two countries on disengagement of troops and de-escalation of the volatile situation in eastern Ladakh.

Meanwhile, India on Sunday recorded 87,382 cases taking the country's caseload to 54.8 lakh. Death toll has surged past the 87,900-mark. Market participants will, meanwhile, continue to track any newsflow regarding the Covid-19 vaccine trials.

Stocks in Asia-Pacific nudged lower on Monday ahead of China's benchmark lending rate decision. South Korea's Kospi dipped 0.15 per cent in early trade while Australia's S&P/ASX 200 index shed 0.18 per cent. Markets in Japan are closed on Monday for a holiday.

Today, the Indian markets might open on a negative note, as indicated by the SGX Nifty which was trading 48 points lower at 7:20 am. Stocks in Asia-Pacific also nudged lower on Monday ahead of China's benchmark lending rate decision. South Korea's Kospi dipped 0.15 per cent in early trade while Australia's S&P/ASX 200 index shed 0.18 per cent. Markets in Japan are closed on Monday for a holiday.

However, a big focus this week will be the primary market as this week will see three IPOs opening for subscription. The offers for Chemcon Speciality Chemicals and Computer Age Management Services will open today while that of Angel Broking will open tomorrow. 

CAMS' IPO has the price band of Rs 1,229-Rs 1,230 per share while Chemcon Speciality's price band is Rs 305-306 per share. Both will close on Wednesday and are expected to see strong demand from investors.

Besides, Route Mobile will also debut at the bourses today after the finalisation of issue price at Rs 350 per share. The issue was subscribed over 73 times and is expected to list at a premium of 50-60 per cent.