Markets Ahead: Macroeconomic Factors, Rupee-Dollar Movements To Influence Investors

The major macroeconomic indicators expected to be released in the week include retail inflation level, industrial production data from India, and core CPI numbers from the US

Other major economic indicators such as the GDP figures from Japan and the UK, along with CPI numbers from China will also be observed during the week.

Source : ABPLIVE AI

Global macroeconomic data, trading activity of foreign investors, and trends in the economy will drive sentiments in the market, analysts noted. The experts said that the movements in the rupee and dollar, fluctuations in global oil benchmark Brent crude, and domestic economic data would influence the equity markets in the week.

The major macroeconomic indicators expected to be released in the week include retail inflation level, industrial production data from India, and core CPI numbers from the US, reported PTI.

Sharing an outlook, Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, noted, “The domestic stock market is likely to be shaped by a mix of global cues, domestic economic indicators, and the flow of investments from foreign and domestic institutional investors. Key factors like the rupee's exchange rate and crude oil prices will play a critical role in determining market trends. Globally, geopolitical tensions, particularly the ongoing Russia-Ukraine conflict, continue to pose challenges. However, recent declines in the dollar index and US bond yields have created a more favourable environment for emerging markets like India.”

 

Notably, the equity markets witnessed a major rally from the benchmark indices last week. The BSE Sensex climbed 2.38 per cent or 1,906.33 points, while the NSE Nifty50 gained 546.7 points or 2.26 per cent. 

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said that FIIs emerged as buyers in the first week of December. The expert said that this was a complete turnaround from their usual strategy of consistently selling seen during the last two months. “The change in FII (Foreign Institutional Investors) strategy is getting reflected in stock price movements, particularly in large-cap banking stocks in which FIIs have been sellers,” Vijayakumar explained.

Additionally, other major economic indicators such as the GDP figures from Japan and the UK, along with CPI numbers from China will also be observed during the week.