New Delhi (Agency): Analysts say that macroeconomic announcements, global influences, and the trading activity of foreign investors are set to be the key drivers for India’s domestic stock markets this week.
Last week was noteworthy as the broader market, including BSE midcap and smallcap gauges, hit all-time highs on Friday. This happened even though there were many negative signals from around the world. Santosh Meena, Head of Research at Swastika Investmart Ltd, pointed out that institutional investors were “net sellers” during last week. He added that factors like crude oil prices, the dollar index, and US bond yields would be closely watched.
Global factors like US inflation rates and outcomes of meetings by the European Central Bank (ECB) will also be important. Arvinder Singh Nanda, Senior Vice President at Master Capital Services Ltd, said that these global events can impact the domestic market. Domestically, numbers about industrial production for July and inflation for August are due to be announced on Tuesday.
“In the domestic context, the market will react to key data such as India’s Consumer Price Index (CPI) and Wholesale Price Index (WPI) inflation, industrial production numbers, and manufacturing output,” Nanda said.
Vinod Nair, Head of Research at Geojit Financial Services, noted that the market is eagerly waiting for further data on inflation and industrial production for guidance. Last week saw a positive rally in domestic indices. The BSE benchmark went up by 878.4 points or 1.34%, and the Nifty rose by 384.65 points or 1.97%.
The positive moves came amid strong domestic macroeconomic indicators like high GDP and Purchasing Managers’ Index (PMI) numbers. “Indian equities remained strong, supported by this positive economic outlook, despite mixed global trends,” Nair stated.
The stock market saw its sixth straight session of growth, defying weak global trends. Prashanth Tapse, Senior VP of Research at Mehta Equities Ltd, said investors remain hopeful about India’s strong growth future.
