Global Trends, FPI's Trading Activity, Inflation Data To Drive Markets This Week, Say Analysts

Traders further stated that the third quarter earnings will also be released for some more firms in the week and would potentially impact movements in the stock market

The two key equity benchmarks, Sensex and Nifty, both declined last week, where the BSE Sensex fell 0.67 per cent or 490.14 points, while the NSE Nifty50 slipped 0.32 per cent or 71.3 points. 

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Upcoming macroeconomic announcements, global market trends, and foreign investors’ trading activity would impact the stock markets in the week, experts noted. Traders further stated that the third quarter earnings will also be released for some more firms in the week and would potentially impact movements in the stock market. 

Elaborating further on the outlook, Santosh Meena, Head of Research, Swastika Investmart Ltd, stated, “This week, we have to deal with macroeconomic data on both the domestic and global front. Our IIP and retail inflation numbers will be released on February 12, while WPI will be released on February 14. The US CPI numbers will be released on February 13, while their retail sales numbers will be announced on February 15. Amid these numbers, the movement in US bond yields and the dollar index will be watched. Apart from this, movement of crude oil and flows from institutional investors will be other important factors. The last batch of Q3 earnings can lead to stock-specific movements,” reported PTI. 

Some major earnings for the week include NHPC, SAIL, BHEL, Hindustan Copper, and Mahindra & Mahindra, among others. Arvinder Singh Nanda, Senior VP, Master Capital Services Ltd, said, “This week, market will react to the global and domestic economic data, FII (Foreign Institutional Investors), DII (Domestic Institutional Investors) investment pattern, crude oil inventories, ongoing quarterly earnings, movement of the rupee against the dollar, trend in the global stock market. Domestic economic numbers will also be in focus such as inflation data and industrial production.”

Notably, the domestic equity markets slipped marginally last week. The two key equity benchmarks, Sensex and Nifty, both ended the week in red. The BSE Sensex fell 0.67 per cent or 490.14 points, while the NSE Nifty50 declined 0.32 per cent or 71.3 points. 

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said that the projection is for markets to act cautiously and consolidate in the near term, with major macro data and Q3 results to be announced soon. Further, Vinod Nair, Head of Research, Geojit Financial Services, also echoed the sentiments and sated that markets will be wary before the inflation data, set to be released soon, for the US, UK, and India.