Markets Ahead: Investors To Keep A Watch On Global Trends, Inflation, PMI Data

The analysts pointed out that election results, global indicators like dollar index performance, and PMI data, among others will be important indicators for investors to keep a lookout for

Global trends and foreign investors’ sentiments are key factors that will drive equity markets in the week ahead, experts noted. Investors will have to gear up for a shortened trading week as stock markets remain closed for trading on November 20 for the assembly elections in Maharashtra.

The analysts pointed out that election results, global macro indicators like dollar index performance, PMI data, and inflation data from Japan, among others will be important indicators for investors to keep a lookout for, reported PTI.

The elections to the 288-member state legislative assembly will be conducted on November 20 and counting of votes will be done on November 23. Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, noted, “The election results, along with key global economic indicators, including US bond yields, dollar index performance, US unemployment claims, flash manufacturing and services PMI data, and Japan's inflation data, will be pivotal in shaping market direction.High US bond yields and a strengthening dollar post-election have impacted emerging markets like India, and FII (Foreign Institutional Investors) activity remains a key factor, influencing Indian equities in the near term.”

Traders will also observe the global market trends in the week, Ajit Mishra, SVP, Research, Religare Broking Ltd explained. Notably, the equity benchmark indices plunged in last week’s trading sessions. The BSE Sensex plummeted 1,906.01 points or 2.39 per cent in the last week. Equity markets also observed a holiday on Friday for the festival of Guru Nanak Jayanti.

Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd, explained, “The sharp fall in the benchmark indices was triggered by foreign investors fleeing the domestic market, weak Q2 earnings and high valuations of equities.Markets remain volatile on the back of subdued Q2 results, rising dollar index and continuous FII selling over the past month and a half.”