Global Trends, Macro Data To Drive Market Movements In The Week: Analysts

On the macroeconomic data, the GDP data for the second quarter is set to be released on Thursday and the PMI data for the manufacturing sector is scheduled to be released towards the end of the week.

With the auto firms set to announce their monthly sales data in the week, auto stocks will remain in focus, starting from December 1.

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Stock markets will be dominated by global trends and macroeconomic data announcements in the week, with volatility expected in the week as monthly derivatives expire, analysts noted. The trading week will be shortened as markets remain closed to observe a holiday on Monday for Gurunanak Jayanti.

Foreign investors’ trading activity and the fluctuations of the domestic currency against the dollar would also be clocked by the investors, reported PTI. “While global cues are relatively muted, market participants will closely monitor movements in crude oil prices, US bond yields, and the dollar index,” said Santosh Meena, head of research, Swastika Investmart Ltd. 

On the macroeconomic data, the GDP data for the July to September quarter is set to be released on Thursday and the Purchasing Managers’ Index (PMI) data for the manufacturing sector is scheduled to be released towards the end of the week. With the auto firms set to announce their monthly sales data in the week, auto stocks will remain in focus, starting from December 1. Arvinder Singh Nanda, senior vice president, Master Capital Services Ltd, noted, “On the macro front, India's Gross Domestic Product (GDP) for the third quarter (July-September) will be released on November 30. The infrastructure output data for October will be released on the same day. The market will take further cues from US GDP data, crude oil inventories, US PMI data and Eurozone core CPI data.”

Notably, the benchmark indices recorded gains in the last week. The BSE benchmark rose 175.31 points or 0.26 per cent, while the Nifty climbed 62.9 points or 0.31 per cent. “The markets were largely quiet in the past week, with no significant changes in the headline indices,” Meena noted. 

Analysts also stated that certain important events could impact the investments from foreign portfolio investors (FPI) into India. V K Vijayakumar, chief investment strategist, Geojit Financial Services, said, “The better-than-expected decline in inflation in the US has given the market confidence to assume that the Fed is done with rate hike. Consequently the US bond yields have declined sharply with the 10-year benchmark bond yield correcting from 5% in mid October to 4.40% now. This has forced the FIIs to slow down their selling. Importantly, they were buyers on four days this month with a big buying of Rs 2,625 crore on Friday.”