Markets to track FII trades, macroeco data, global trends this week: Analysts
Macroeconomic data announcements, trading activity of foreign investors and global trends will guide the movement of the equity market this week, which will also mark the beginning of a new calendar year and month, say analysts.
Movement of the rupee, which registered its biggest fall in nearly two years to a lifetime low on Friday, will be followed by investors.
“Selling by persistent FIIs (Foreign Investors) has been a source of pressure on Indian markets, and their stance in the new year may set the trend for the near term.
Meanwhile, monthly auto sales data will also be closely watched. As the Q3 earnings season approaches, quarterly corporate updates will start coming in, setting the stage for market expectations,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
On the international side, key economic indicators such as manufacturing PMI data from China and the US, as well as US jobless claims, will play an important role, said Meena.
However, the dollar index and US bond yields remain the most critical factors influencing the direction of global markets, he added.
Auto stocks will also remain in the spotlight this week amid the announcement of monthly sales data.
“As we enter the new calendar year and month, the auto sales data will be closely watched for market signals. In the absence of significant developments, attention may shift to FII inflows and capital flows, especially as the rupee continues to weaken against the US dollar.
These factors can play an important role in shaping the market in the near term,” said Ajit Mishra — SVP, Research, Religare Broking Ltd.
Last week, the BSE benchmark rose 657.48 points, or 0.84 percent, while the Nifty rose 225.9 points, or 0.95 percent.
Vinod Nair, Head of Research, Geojit Financial Services, said, “Looking ahead, it is expected that the market will be closely watched for the upcoming Q3 results, which will play an important role in correcting the market situation. Budget expectations.
“Furthermore, key data points such as PMI data for India, the US, and China, as well as the lackluster US claims, will impact investors’ outlook.”
Last week was accompanied by intraday volatility, the analyst said, adding that FIIs showed low volumes due to the Christmas and New Year holidays, continuing as retail traders.
“Market outlook will be guided by major domestic and global economic data such as India’s infrastructure output, India’s manufacturing PMI, UK S&P global Production PMI, US initial jobless claims,” said Puneet Singhania, Director of Master Trust Group.
“Without significant triggers in the near term, markets are likely to remain subdued,” Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd — said.
