RBI’s interest rate decision, macroeconomic data, and global trends would dictate terms in the equity market in a holiday-shortened week, analysts said.
Besides, the focus will also be on foreign portfolio investors’ trading activity, they added. Equity markets will remain closed on Tuesday for ‘Mahavir Jayanti’ and on Friday on account of ‘Good Friday’.
“Investment by FIIs, who are turning out to be small net buyers, and DIIs will be monitored. The market will also have an eye on the RBI MPC meeting. The RBI policy outcome is scheduled for April 6,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
From auto sales data, Maruti Suzuki, Hyundai and Tata Motors reported their highest-ever dispatches to dealers last fiscal, enabling the domestic passenger vehicle industry to log in the best-ever performance to date.
“This week is also a holiday-shortened one and scheduled events and data would keep participants busy. On the macroeconomic front, S&P global manufacturing PMI and services PMI data are scheduled on April 3 and April 5. The key highlight would be the outcome of the MPC policy review meet on April 6.
“Apart from domestic factors, global cues and trends of foreign flows will also be in focus,” Ajit Mishra, VP
– Technical Research, Religare Broking Ltd, said.
Last week, the 30-share BSE benchmark jumped 1,464.42 points or 2.54 per cent. The Sensex zoomed 1,031.43 points or 1.78 per cent to finish at 58,991.52 on Friday.
In the near term, the focus will now remain on RBI’s policy meeting this week, Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, said.
Markets in Asia, Europe and the US ended in positive territory on Friday as concerns about further banking turmoil receded.
Vinod Nair, Head of Research at Geojit Financial Services, said that in India, investors are awaiting the outcome of the RBI MPC meeting scheduled for this week, as well as PMI data.
“In the US, the release of personal consumption expenditures data is awaited, as it is a crucial indicator for forecasting the Federal Reserve’s future actions,” Nair added.