Stock Market This Week: PMI Data, Global Trade Talks In Focus As Tariff Deadline Nears

A series of domestic and international economic data releases are scheduled, with market participants especially focused on India’s industrial performance and global trade cues.

Hopes are high for potential deals with key international partners, which may influence global trade flows and risk sentiment in equity markets.

Source : ABPLIVE AI

As the financial markets open for a new week, investor attention will be closely centred around macroeconomic indicators, foreign investor activity, and global geopolitical developments. Analysts believe that these factors will play a significant role in shaping market sentiment in the days ahead.

A series of domestic and international economic data releases are scheduled, with market participants especially focused on India’s industrial performance and global trade cues, reported PTI.

According to Bajaj Broking Research, the week will kick off with the release of India’s May Industrial Production (YoY) figures on June 30, followed by the manufacturing Purchasing Managers’ Index (PMI) for June on July 1. The services PMI will be released on July 3. These indicators are expected to offer insight into the health of the Indian economy, particularly in the manufacturing and services sectors.

How Did Markets Fare Last Week?

Stock markets posted strong gains last week, buoyed by receding tensions in the Middle East and a sharp correction in global crude oil prices. The BSE Sensex climbed 1,650.73 points or 2 per cent, while the NSE Nifty advanced 525.4 points or 2 per cent over the course of the week. The rally extended across four consecutive trading sessions, with the Sensex gaining 2,162.11 points or 2.64 per cent and the Nifty rising 665.9 points or 2.66 per cent.

Looking ahead, investor focus will also shift to the upcoming first quarter corporate earnings season, with many anticipating early signs of growth and business momentum.

Vinod Nair, Head of Research at Geojit Financial Services, said, “Market participants are closely watching key economic indicators such as the United States non-farm payroll and unemployment figures, along with India's industrial production data, to gauge the strength and trajectory of the economic recovery both domestically and internationally.”

Additionally, global developments related to trade agreements involving the United States are drawing attention. Hopes are high for potential deals with key international partners, which may influence global trade flows and risk sentiment in equity markets.

FII Trends, Monsoon Progress and US-India Trade Prospects Under Scanner

Foreign institutional investment flows and global crude oil price trends are expected to remain major triggers for Indian equities. Market watchers are also monitoring monsoon progress, which could impact agricultural output and rural demand — both critical to India’s economic growth.

“Domestically, high-frequency data such as IIP and PMI figures will be in focus, along with monsoon progress and FII activity, to gauge short-term market trends,” said Ajit Mishra, SVP – Research, Religare Broking Ltd.

Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd, added, “We expect the market to witness a steady uptrend, supported by improving institutional inflows, prospects of a US-India trade deal…”

As the week unfolds, a combination of domestic macro data, global economic signals, and institutional investor behaviour will shape the trajectory of Indian markets.