Indian Stock Market Expected to Remain Consolidative Amid Range-Bound Trading

The Indian stock market is expected to remain consolidative in the upcoming week, with range-bound trading and a cautious mood. Market participants will focus on several key factors, including Q1FY27 GDP growth, monthly auto sales, oil price movements, manufacturing and services PMI readings, and US economic releases.

The market remained under pressure for the third consecutive week ended August 28, with the Nifty 50 falling 76 points, or 0.31 percent, to 24,176. However, the broader markets continued to outperform the benchmark indices despite a measured increase in domestic bond yields.

Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, stated that Indian equities are expected to trade in a broader range amid a lacklustre environment, mixed global cues, and persistent geopolitical tensions. Investors are awaiting further clarity on geopolitical developments, while key global and domestic macro triggers will guide market direction.

Apart from Middle East tensions and oil prices, global markets will also focus on several key US economic releases, including monthly jobs data, factory orders, and manufacturing and services PMI readings. The jobs data will be an important data point for the US Federal Reserve in determining the trajectory of interest rates going ahead.