Markets Ahead: Investors To Observe Auto Stocks, Rupee Movements, And Global Trends, Say Analysts

The Indian rupee also recorded its steepest fall in almost two years to reach a lifetime intra-day low on Friday. Meanwhile, auto stocks will also be observed by the market players in the week

The BSE Sensex gained more than 650 points or 0.84 per cent, while the NSE Nifty50 climbed over 200 points or 0.95 per cent in the week.

Source : Toppr

Global trends, trading sentiment of foreign investors, and macroeconomic announcements will influence traders in the coming week, analysts said. The experts noted that the equity markets will keenly be on the lookout for fluctuations in currency movements and major data reveals across the globe as investors mark the beginning of the New Year in the week. 

The Indian rupee also recorded its steepest fall in almost two years to reach a lifetime intra-day low on Friday, reported PTI. Meanwhile, auto stocks will also be observed by the market players in the week.

Santosh Meena, Head of Research, Swastika Investmart Ltd, noted, “Persistent FIIs (Foreign Institutional Investors) selling has been a source of pressure on Indian markets, and their stance in the new year could shape near-term trends. Meanwhile, monthly auto sales data will also be closely watched. As the Q3 earnings season approaches, corporate quarterly updates will begin trickling in, setting the stage for market expectations.”

The expert said major economic indicators such as manufacturing PMI data from China and the US, along with jobless claims from the US would be crucial factors to watch in the week. “However, the dollar index and US bond yields remain the most critical factors influencing the direction of global markets” he added.

Ajit Mishra, SVP, Research, Religare Broking Ltd, said, “Auto stocks will also remain in the limelight this week amid monthly sales data announcement. As we step into the new calendar year and month, auto sales data will be closely monitored for initial market cues. In the absence of any significant events, attention is likely to shift toward FII flows and currency movement, especially as the rupee continues to weaken against the US dollar. These factors could play a crucial role in shaping market direction in the near term.”

Notably, the equity markets witnessed a major rally last week. The BSE Sensex gained more than 650 points or 0.84 per cent, while the NSE Nifty50 climbed over 200 points or 0.95 per cent in the week.