Market Ahead Podcast, Sep 22: Top factors that could guide markets today
Indian markets have surrendered to their global counterparts, dancing to their tunes. And this trend is likely to continue amid a lack of triggers back home
BS Web Team NewDelhi
 "BSE, stock market")
Photo: Bloomberg
Indian markets have surrendered to their global counterparts, dancing to their tunes. And this trend is likely to continue amid a lack of triggers back home. Tuesday's market moves only go on to corroborate this view.
The benchmark indices wobbled in early trade as the Asian market mood remained tepid. But recovery was equally swift to arrive when European peers and US futures signalled strength. BSE Sensex managed to reclaim the 59,000 mark when it rallied 514 points. Meanwhile, Nifty50 settled Tuesday's trade at 17,562, up 165 points.
That's not it! Market bulls have started to see a silver lining for India amid the Chinese crisis that has other Asian peers in a bear squeeze. They believe the Chinese crackdown earlier and the Evergrande crisis now bode well for India, as it can facilitate capital flows.
The next few days though present a test for the markets.
The US Federal Reserve's monetary policy meeting would conclude later today and is likely to offer some guidance on the tapering timeline. And Evergrande is due to meet its bond interest payments on Thursday.
Will the tapering this time be without tantrum?
According to a Bloomberg poll of economists, the US Fed will hint at its meeting that it is moving towards scaling back monthly asset purchases and make a formal announcement in November. They expect Fed to hold interest rates near zero through 2022.
Bloomberg
- Two-third of economists expect bond-buying announcement at Nov 2-3 meeting
- Over 50% expect the tapering to start in Dec (earlier than what the survey estimated in July)
That said, analysts at Dankse Bank believe that more than the time, the pace of tapering will be important. They also expect the Fed to wait a bit longer before announcing details on tapering
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Danske Bank
- We expect the Fed to wait a bit longer before announcing details on tapering.
- The tapering pace will be more important than the exact timing
- We expect the Fed to signal one rate hike next year (up from zero) in the updated projections
That said, the action in the primary market would be worth eyeing as the Rs 171 crore issue by Paras Defense and Space Technologies will open for the second day of subscription today. The IPO sailed through within minutes on Day 1. At the end of the day, it had garnered over 16.5 times bids, with retail quota subscribed the most.
Lastly, stock-specific news flow, FII movement and oil prices could also sway market moves.
Topics :Market Ahead
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First Published: Sep 22 2021 | 9:00 AM IST
