Analysts predict that global trends, foreign investor activity and domestic macroeconomic data will influence the equity market in the upcoming holiday-shortened week, with markets closing Wednesday for Mahatma Gandhi Jayanti.
Ajit Mishra from Religare Broking Ltd noted that global factors will be crucial moving forward, especially given the absence of major domestic events. Key data releases on auto sales, manufacturing, and services PMI will be closely watched, alongside trends in foreign fund flows and crude oil prices.
Domestic factors driving stock movements
Upcoming monthly auto sales data and quarterly company reports are expected to drive stock-specific movements, with PMI data for manufacturing and services also influencing trading.
Siddhartha Khemka from Motilal Oswal Financial Services Ltd expects continued positive momentum, driven by frontline stocks. Last week, the BSE benchmark rose 1,027.54 points (1.21%), while the Nifty gained 388 points (1.50%), with both indices reaching record intra-day highs.
Focus on Q2 earnings and economic stimulus
Vinod Nair from Geojit Financial Services highlighted that investors are focused on Q2 earnings, anticipating improved outlooks. The market’s positive response to the Fed’s rate cut and China’s economic stimulus has boosted investor confidence and generated momentum in global markets.