Macro data, global indices to dictate market trend this week: analysts

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Stock market trading activity will be guided by a slew of macroeconomic data announcements expected over the week, outside of global trends amid continued concerns about high inflation, analysts said.

Foreign institutional investors (FIIs), a key driver for Indian markets, would also be followed for clues, they added.



“The market will remain busy with macro numbers this week where GDP, auto sales and PMI numbers will be factors on the home front, while PMI numbers from various countries and unemployment data from the US will be important global macro figures.

“In the midst of all of this, the movement of the dollar index and crude oil prices will continue to impact market volatility. FIIs are still in sell mode where it will be interesting to see if they are starting to buy in the Indian market amid improving sentiment,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

In the latest batch of earnings, companies like Aurobindo Pharma, Jindal Steel and Sun Pharma will announce their numbers.

“This week also marks the start of the new month and participants will be watching important high-frequency data such as auto sales, manufacturing and services PMI data closely.

“Ahead of that, GDP data, which is scheduled for May 31, will be the focus. Apart from these, monsoon progress updates will also remain on the radar,” Ajit said. Mishra, Vice President – Research, Religare Broking Ltd.

Last week the Sensex jumped 558.27 points or 1.02% and the Nifty gained 86.30 points or 0.53%.

Vinod Nair, head of research at Geojit Financial Services, said: “Towards the end of last week, the market was able to recover its losses following favorable retail profits in the United States and the reduction in sales of FII. . For this to hold, the actions taken by the Fed and the RBI in June will be an important factor.”

Additionally, the movement of Brent Crude Oil and the Rupee against the US Dollar would also be watched by investors.

Yesha Shah, head of equity research at Samco Securities, said: “In India, amid global recession concerns, Indian GDP growth data is eagerly awaited. Along with the GDP print, monthly automaker sales will also be in the spotlight. Given the series of data releases, this week will no doubt be eventful.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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