Global Macro Data, Domestic PMI Numbers, Currency Movements To Drive Markets This Week, Say Analysts

The market experts said that the coming week could expect some volatility based on the fluctuations in the global oil benchmark, Brent crude, and movements in the rupee and dollar

In the week, the US Federal Reserve Chairperson, Jerome Powell, is scheduled to deliver a speech on Tuesday.

Source : Unsplash

Global economic trends, domestic macroeconomic announcements, and foreign investors’ trading activity will drive the sentiments in the market this week, analysts noted. The market experts said that the coming week could expect some volatility based on the fluctuations in the global oil benchmark, Brent crude, and movements in the rupee and dollar.

Elaborating on the market outlook, Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, said, “Potential volatility in the stock market is anticipated this week. Elevated valuations remain a concern, with investors now focusing on monsoon progress and its impact on the rural economy. The upcoming Union Budget in July has become the next focal point, with high expectations for growth-oriented policies,” reported PTI.

Gour stated that the market would also observe closely the foreign and domestic institutional investors’ activity and crude prices. Globally, data from the US such as the job openings report, ISM Services PMI data are scheduled to be released on July 2 and July 3 respectively. The analyst added that the US market witnessed some profit-booking from higher levels.

Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said, “The outlook for the market will be guided by major domestic and global economic data such as HSBC India Manufacturing PMI, HSBC India Services PMI, S&P Global Manufacturing PMI, Fed speech, initial jobless claims this week.”

In the week, the US Federal Reserve Chairperson, Jerome Powell, is scheduled to deliver a speech on Tuesday. The Federal Open Market Committee (FOMC) minutes would be released on Wednesday. Gour noted that dollar index movements and the US bond yields would also be key factors to observe.

Notably, the BSE benchmark index climbed 1,822.83 points or 2.36 per cent, while the Nifty index gained 509.5 points or 2.16 per cent. The BSE Sensex also clocked the best monthly increases in June and jumped 7.14 per cent. The Sensex crossed the historic 79,000 mark on Thursday, and the Nifty also breached the 24,000 level for the first time in intra-day trade.

Siddhartha Khemka, Senior Group, VP, Head - Research, Broking & Distribution, Motilal Oswal Financial Services Ltd, explained, “We expect this positive momentum to continue at a steady pace with stock-specific action. However, the release of economic data points this week would keep a little volatility in the market. Sector like auto is expected to be in the limelight with release of their monthly sales number.”