The market is likely to move sideways for a better part of the coming week. There may be some smart rallies during the course of the week, but a sustained upside looks highly unlikely, given the uncertain near term outlook for the global economy.
Activity will be mostly stock specific. On a sectoral basis, the automobile and cement sections are likely to be in focus with monthly sales and shipments data providing cues. Metal stocks will track the global trend.
The expert panel's recommendation on General Anti-Aoidance Rules (GARR) is likely to aid sentiment when the market opens for trading on Monday. The committee has suggested that implementation of the controversial provision be postponed by three years.
Among other things investors will be watching out for is the data on manufacturing activity during the month of August. The HSBC India Manufacturing Managers' Index will be released by Market Economics on Monday. The data on services sector activity is due for release on Wednesday (5 September).