Market Ahead Podcast, September 23: Factors That Could Drive Markets Today

Comments from US Fed Chairman Jerome Powell on the outlook for the job market, the retrenchment of the bond buying program and the path of interest rates will dictate market trends on Thursday.

Investors had expected an indication of reducing the cash program by $ 120 billion, with hints of a probable withdrawal in November or December.

Therefore, episodes of volatility can put market participants on edge today.

Meanwhile, assurance from Chinese real estate developer Evergrande that it will honor the interest payments owed today could ease the nerves of investors.

However, investors are now awaiting Beijing’s stance on the matter and will follow if the government steps in.

Back home, the weekly F&O expiration, flow of stock specific information, FII trends and primary market action will influence market mood.

Paras Space and Defense Technologies’ initial public offering, which has so far been well received by market players, will close later today.

So far, the show has been subscribed more than 40 times, with the quota of retail investors reaching a whopping 68 times the subscription.

On Wednesday, investors in Dalal Street ditched large-cap stocks for small and mid-cap players as valuation issues persisted at the benchmark level.

The Nifty Midcap 50 jumped 2.74%, while the Nifty Midcap 100 was up 1.67% from the previous close. At the same time, the Smallcap 100 pack was up 1.4%.

In contrast, the NSE Nifty was 15 points lower than Tuesday at 17,547, while its BSE counterpart Sensex was 58,927, down 78 points.

In terms of sectors, the Nifty Media pack grabbed the spotlight, up 13.57%, following a strong recovery by the heavyweight of the Zee Entertainment index.

Zee’s shares jumped more than 30% after the media company’s board of directors unanimously approved its tentative deal for its merger with Sony Pictures Networks India.

The deal, analysts said, is expected to allay investor concerns over corporate governance issues and may result in a significant stock appreciation in the future.

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