The week beginning August 28th is packed with major national and global macroeconomic events that could impact trading on Dalal Street.
In the coming week, India’s first quarter GDP, budget deficit and infrastructure sector production, both for the month of July (all data will be released on August 31st) are key figures to follow. In the coming week, seven new initial public offerings (IPOs) – three major exchanges and one in the small and medium-sized enterprise (SME) segment – will also be open for subscription. And three mainboard IPOs and one in the SME segment are nearing completion. Three shares are expected to enter Dalal Street – one on the BSE-SME platform and two on the NSE-SME platform.
On a global level, US GDP figures for the second quarter (29 August) will be released next week. In addition, data on the manufacturing Purchasing Managers’ Indices (PMI), indicators of economic trends, will be released for August from the US, UK, Japan, China and the euro zone. The latest unemployment reports from Japan (28 August) and the USA (1 September) are also significant.
Let’s take a look at the key economic data releases for the coming week:
August 28th
Japan Unemployment Rate July
Japan’s unemployment rate fell to 2.5 percent in June from 2.6 percent in May. The job-to-application ratio fell to 1.30 in June from 1.31 in May. The figure shows that for every 100 job seekers there were 130 vacancies. The number of unemployed fell by 40,000 to 1.73 million compared to the previous month. The number of people in employment rose by 260,000 to 67.85 million in June compared to the previous year.
29th August
US GDP Q2
According to the preliminary estimate, U.S. real gross domestic product (GDP), a comprehensive measure of economic activity, grew at an annual rate of 2.4 percent in the second quarter of 2023. In the first quarter, real GDP increased by 2.0 percent.
August 30th
China Manufacturing PMI August
China’s official purchasing managers’ index (PMI) for manufacturing rose to 49.3 in July, up from 49 in June, but remained on the decline for a fourth straight month. The 50 mark separates monthly growth from decline.
August 31st
India’s GDP Q1
The gross domestic product (GDP) growth rate rose to 6.1 percent from January to March for the first time in three quarters. At 6.1 percent, the growth figure for the fourth quarter is well above expectations of 5.1 percent.
India infrastructure production July
Output in eight major infrastructure sectors — coal, crude oil, steel, cement, power, fertilizers, refined products and natural gas — posted a growth rate of 8.2 percent in June, the highest in five months, compared with 5.0 percent in May this year Year. In June 2022, the growth of the core sector was 13.1 percent.
India’s budget deficit in July
Union government budget deficit widened to Rs 4.51 million in the first three months (April-June) of FY2023-24. The budget deficit widened 28.3 percent year-on-year in April-June and 62.9 percent in June. At Rs 4.51 crore, the budget deficit for the first three months of the current fiscal year accounts for 25.3 percent of the full year target of Rs 17.87 crore.
Initial jobless claims in the US
The number of Americans filing new jobless claims fell for the second straight week, falling by 10,000 to 230,000 in the week ended Aug. 19. In the previous week, initial jobless claims totaled 240,000.
Japan Manufacturing PMI August
Japan’s private sector factory activity fell for the third straight month in August. Japan’s Purchasing Managers’ Index (PMI) by the au Jibun Bank flash rose to a seasonally adjusted 49.7 in August from 49.6 in July. The index remained below the 50.0 index point threshold, which separates contraction from expansion.
Caixin Manufacturing August PMI
Production conditions in China weakened slightly in July. The seasonally adjusted headline purchasing managers’ index (PMI) – an indicator of operating conditions in manufacturing – fell to 49.2 in July from 50.5 in June.
September 1
India S&P Global Manufacturing PMI August
The seasonally adjusted S&P Global India Manufacturing PMI came in at 57.7 in July, broadly flat from 57.8 in June.
Manufacturing PMI for Eurozone in August
Eurozone manufacturing PMI fell in July 2023 for the sixth straight month, falling to a low of 42.7 in July from 43.4 in June, the sharpest decline since May 2020, according to S&P Global. The Purchasing Managers’ Index for flash production stood at 43.7 in August.
UK manufacturing PMI in August
UK manufacturing saw a sharp downturn in July. The PMI fell to 45.3, the lowest since May 2020. The Flash Manufacturing PMI was 42.5 in August.
US Unemployment Rate August
The unemployment rate fell to 3.5 percent in July from 3.6 percent in June. The number of unemployed in July was 5.8 million. The economy created 187,000 jobs in July.
US Manufacturing PMI August
The seasonally adjusted S&P Global US Manufacturing PMI was 49.0 in July, up from 46.3 in June. The preliminary S&P Global US Manufacturing PMI fell from 49 in July to 47 in August 2023.
IPOs and listings
In the coming week, seven new initial public offerings (IPOs) – three major exchanges and one in the small and medium-sized enterprise (SME) segment – will also be open for subscription. And three mainboard IPOs and one in the SME segment are nearing completion. Three shares are expected to enter Dalal Street – one on the BSE-SME platform and two on the NSE-SME platform. Read details on the IPOs of Mono Pharmacare, Vishnu Prakash R Punglia, Sahaj Fashions, Basilic Fly Studio, CPS Shapers, Rishabh Instruments, as well as Bondada Engineering, Sungarner Energies and Crop Life Science listings.
