Stock Market Update: Check trends to guide equity market movements in India this week.
Last week was marked by stability with intraday volatility.
Stock Market Update: According to analysts, equity market movements this week will be shaped by macroeconomic data releases, foreign investors’ trading activities and global trends at the start of the new calendar year and month.
The rupee has hit a lifetime low.
Movements in the rupee, which posted its biggest drop in nearly two years to hit a lifetime intraday low on Friday, will also be tracked by investors.
FII sales and its role in market trends
“Continuous selling by FIIs (Foreign Institutional Investors) has been a source of pressure. Indian marketand their stance in the new year may shape near-term trends. Meanwhile, monthly auto sales data will also be closely watched. As the Q3 earnings season approaches, corporate quarterly updates will start pouring in, setting the stage for market expectations,” said Santosh Meena, Head of Research, Swastika Invest Mart Ltd.
On the international front, key economic indicators such as the release of PMI data from China and the US, along with US jobless claims, will play an important role, Meena said.
However, the dollar index and US bond yields are the most important factors affecting the direction of global markets.
Auto stocks in focus amid monthly sales data
Auto stocks will also be in the spotlight this week amid the announcement of monthly sales figures.
“As we move into the new calendar year and month, the auto sales data will be closely monitored for early market signals. In the absence of any major events, FII flows and currency movements is likely to draw attention, especially as the rupee continues to weaken against the US dollar. These factors could play a major role in shaping market direction in the near term,” Ajit Mishra – SVP, Research, Religare Broking Ltd. said.
Last week, the BSE benchmark climbed 657.48 points, or 0.84 percent, and the Nifty gained 225.9 points, or 0.95 percent.
Q3 Earnings Season: Elevating Market Expectations
Vinod Nair, Head of Research, Geojit Financial Services, said, “Looking forward, significant market attention is expected for the upcoming Q3 results, which will play an important role in shaping market momentum. Investors will adjust their portfolios based on pre-budget expectations.
“In addition, key data points such as PMI data for India, the US, and China, as well as US unemployment claims, will weigh on investor sentiment.”
Last week was marked by stability with intraday volatility, an analyst said, adding that FIIs continued as net sellers due to Christmas and New Year holidays.
Puneet Singhania, director, Master Trust Group, said, “The outlook for the market will be guided by key domestic and global economic data such as India’s Infrastructure Output, India’s Manufacturing PMI, UK S&P Global Manufacturing PMI, US Initial Jobless Claims”.
“With no major triggers in the near term, markets are likely to remain in a range,” said Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services Ltd.
(with PTI input)