Stock markets to take cues from macro data, global trends: Analysts
Trading in the domestic equity market this week will be largely driven by a host of macroeconomic data announcements and global trends, analysts said.
Industrial production data for July and inflation rate for August are scheduled to be announced on Monday. Besides, wholesale price index (WPI) inflation data will be released on Wednesday.
“The direction of the market in the week ahead will be determined by cues from the global markets as well as important macroeconomic data points such as inflation, manufacturing and industrial production,” said Vinod Nair, Head of Research at Geojit Financial Services.
Other major factors that would influence trading are foreign fund movement and trend in the rupee against the US dollar.
“Global markets will keenly await the inflation numbers of the US. This data will be closely watched by international markets since it will affect how the Fed will proceed with future rate hikes,” said Apurva Sheth, Head of Market Perspectives, Samco Securities.
The volatility in oil prices and USD-INR trend will be important factors that may affect the market, said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
Last week, the Sensex advanced 989.81 points or 1.68 per cent, while the Nifty gained 293.90 points or 1.67 per cent.
“We maintain our bullish view on markets,” said Ajit Mishra, VP – Research, Religare Broking Ltd.
“As we’re seeing buying interest across the board, the focus should be more on the best-performing sectors viz banking, financials, auto and FMCG, and remain selective in the others,” Mishra added.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Comments are closed.