Analysts: Markets This Week Will Be Influenced by Macroeconomic Data and International Factors
According to observers, the local equities market, which is now on a record-breaking tear, will pay close attention to macroeconomic data releases, changes in global stock prices, and the US Fed minutes to determine its future course.
Investors will also be influenced by the trading activities of foreign institutional investors (FIIs).
On the domestic macroeconomic front, Purchasing Managers’ Index (PMI) data will be issued on Monday for the manufacturing sector and on Wednesday for the services sector.
Investors will be closely monitoring important events affecting the world economy this week, including the release of the Federal Open Market Committee (FOMC) minutes on Wednesday.
“This week, the market will be guided by economic data that will be made public both locally and internationally. Investors will also be keeping an eye on the FOMC minutes to learn more about the future course of action of the US Central Bank, according to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd.
After releasing their June sales statistics on Saturday, auto stocks will be the subject of attention on Monday.
According to Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd., investors will carefully watch changes in crude oil prices, the dollar index, and US bond rates on international markets.
Between July 3 and July 7, the unemployment rate, US nonfarm payrolls statistics, and the global services PMI will all be released. Institutional action will also significantly affect market movements, Gour said.
The BSE benchmark increased by 1,739.19 points or 2.76 percent last week, while the Nifty increased by 523.55 points or 2.80 percent.
The 30-share BSE Sensex increased by 803.14 points or 1.26 percent on Friday to close at a record-high level of 64,718.56. It increased by 853.16 points, or 1.33 percent, during the day to hit an all-time intraday high of 64,768.58.
The NSE Nifty increased by 216.95 points, or 1.14 percent, to close at a high position of 19,189.05. It increased by 229.6 points or 1.21 percent during the day to reach an all-time intraday high of 19,201.70.
According to market observers, factors that contributed to the market bounce last week included higher foreign investor purchasing, a resurgence of the monsoon, and the favorable effects of the HDFC merger developments.
Strong FII inflows, HDFC’s merger update, and a decreasing current account deficit all contributed to the market’s upward momentum. According to Vinod Nair, Head of Research at Geojit Financial Services, “good results from the US bank stress test performed by the Fed and favorable revisions in the US Q1 GDP helped to boost investor confidence globally.
The biggest private sector lender in the nation’s parent company, HDFC Ltd, merged with HDFC Bank on Saturday after being approved by the boards of both organizations. The idea had first been submitted on April 4 of last year.
This week’s attention will be on India’s manufacturing and services PMI figures, according to Arvinder Singh Nanda, Senior Vice President of Master Capital Services Ltd.
