GDP Data, Crude Oil Prices, and US Non-Farm Payrolls Report Set to Guide Stock Markets

The upcoming week is expected to be highly eventful for stock markets, with several key economic releases and data announcements set to guide market direction. According to analysts, India's Q1 FY27 GDP data, scheduled to be released on August 31, will be a major factor in determining the market's trajectory.

Investors will also monitor India's August manufacturing and services PMI readings, GST collections, foreign exchange reserves, and movement in the rupee. The US non-farm payrolls report, due on September 4, is expected to have a significant impact on global market sentiment, particularly regarding expectations for the Federal Reserve's September policy decision.

Foreign portfolio investors (FPIs) have been showing buying interest in Indian equities, infusing ₹30,919 crore in August. Analysts believe that the outcome of the US employment data will influence expectations regarding the Federal Reserve's September policy decision, the US dollar, Treasury yields, and emerging-market fund flows.

Markets are looking ahead to the August jobs report, due on September 4, along with the next inflation reading, as key data points in determining whether the recently increased expectations of a September rate hike hold or ease. The recent hawkish remarks by Fed Chair Kevin Warsh at Jackson Hole have made US monetary policy the dominant global catalyst.