Investors To Observe Domestic Macro Data, Global Trends, Currency Movements, Say Analysts

Trading in equities would be influenced by the activity of foreign investors, fluctuations in the global oil benchmark Brent crude, and trends in the currency movements, experts said

Domestic macroeconomic data and global market trends would drive the stock market in the week, analysts noted. The experts stated that markets could experience volatility in the week due to elevated valuations. Further, on the domestic front, figures like inflation and the industrial production data would impact movement in the market, they said.

Additionally, trading in equities would also be influenced by the activity of foreign investors, fluctuations in the global oil benchmark Brent crude, and trends in the currency movements, reported PTI citing experts’ analysis. Notably, the two key equity benchmark indices, Sensex and Nifty, reached their fresh peaks in the last trading session on Thursday. 

In addition to India, the US will also release its consumer price index (CPI) data in the week on Tuesday. Further ahead in the week, WPI data will be announced. Santosh Meena, head of research, Swastika Investmart Ltd, noted, “Large-cap stocks may continue their outperformance as Foreign Institutional Investors (FIIs) are expected to maintain their buying spree.”

On the global end, inflation data from China and the US will help provide insights into the global macroeconomic outlook. Vinod Nair, head of research, Geojit Financial Services, said, “We expect volatility to persist in this week due to high valuations and forthcoming policy rate guidance releases.”

The indices last week traded in a record-breaking rally. The BSE Sensex jumped nearly 375 points or 0.50 per cent in the week. The markets remained closed for trading on Friday to mark the occasion of Mahashivratri. 

“Apart from the scheduled macroeconomic data, the performance of the global indices would continue to offer cues over market direction. Currently, the US markets are seeing some profit-taking, after a steady uptrend for 4 months. And, that might result in intermediate volatility in our markets too, especially at the open,” noted Ajit Mishra, SVP-Technical Research, Religare Broking Ltd.