Analysts Expect Global Trends, Macroeconomic Data To Drive Equities Market

Analysts believe the rupee’s movement against U.S. Dollar and the Global oil benchmark Brent crude price will also have an impact on the trading pattern

These indicators will help provide an important insight into the condition of global economy and might also have an impact on market sentiment

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The equity markets will function according to domestic macroeconomic data announcements, global trends, quarterly earnings, and foreign fund trading activity in the coming week. According to analysts, these factors will drive the equities market. 

Along with these factors, the rupee’s movement against U.S. Dollar will also have an impact on the trading pattern, reported PTI. Global oil benchmark Brent crude price will also need to be monitored to keep a track of the market movements, the report said. 

Analysts noted that the release of U.S. manufacturing PMI data will be closely monitored along with other data like U.S. services PMI and U.S. non-farm payrolls, expected to be released between August 1 and 4. 

These indicators will help provide an important insight into the condition of global economy and might also have an impact on market sentiment, the report stated. 

Pravesh Gour, senior technical analyst at Swastika Investmart Ltd. said, “Institutional activity will also have a significant impact on market trends.”

Additionally, domestic macroeconomic data is also expected to be released in the coming week. PMI data for manufacturing and service sectors will be announced on Tuesday and Thursday respectively, noted the analysts. Some important quarterly earnings expected in the week include Adani Green Energy, Ambuja Cements, GAIL, Titan, Mahindra & Mahindra, State Bank of India, and more. 

Ajit Mishra, SVP-technical research at Religare Broking Ltd. said, “Apart from earnings, we have been closely following the performance of global indices for cues and the prevailing buoyancy in the U.S. markets gives us the comfort to hold the bullish view.”

Analysts expect the auto companies to remain in focus for their monthly sales data announcements in the week, the report added. 

Reiterating the role of global macroeconomic data, Vinod Nair, head of research at Geojit Financial Services said, “In the coming days, domestic earnings will remain a crucial driver, while global cues will also play a vital role in shaping market trends.”

Last week witnessed a fall in the BSE benchmark by 524.06 points and the markets ended their four-week-long gaining streak. While the NSE Nifty declined by 13.85 points to finish at 19,646.05.