Macroeconomic data, global cues to determine market trends this week
New Delhi:
Analysts said trading activity in equity markets would be guided by a host of macroeconomic data announcements scheduled during the week, apart from global trends amid ongoing concerns over high inflation.
Foreign institutional investors (FIIs), a key driver for the Indian markets, will also be monitored for cues, he added.
“Markets will be busy this week with macro numbers where GDP, auto sales and PMI numbers will be factors on the domestic front, while PMI numbers for various countries and unemployment data from the US will be important global macro numbers.
“Amidst all this, volatility in the dollar index and crude oil prices will continue to have an impact on the market volatility. FIIs are still in sell mode, where it will be interesting to see if they can better the sentiments in the Indian market. Let me start some shopping.” Santosh Meena, Head of Research, Swastika Investmart Limited said.
Companies like Aurobindo Pharma, Jindal Steel and Sun Pharma will announce their numbers in the last batch of earnings.
“This week also marks the start of a new month and participants will be eyeing important high-frequency data such as PMI data for auto sales, manufacturing and services. Prior to this, GDP data, which is scheduled for May 31, will be in focus. Updates on the progress of monsoon will also be on the radar,” said Ajit Mishra, VP – Research, Religare Broking Ltd.
Last week, the Sensex had gained 558.27 points, or 1.02 per cent, and the Nifty had gained 86.30 points or 0.53 per cent.
Vinod Nair, Head of Research, Geojit Financial Services, said, “Last weekend, the market was able to recover its losses following favorable retail earnings in the US and reduction in FII sales. To sustain this, action was taken. A key factor will be by the Fed and RBI in June.” Besides, the movement of Brent crude oil and rupee against the US Dollar will also be monitored by investors.
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