NEW DELHI, Dec 8: Investor sentiments are expected to be influenced by a range of domestic and international macroeconomic data releases this week, alongside the trading patterns of foreign investors and global stock market trends, analysts indicated.
Additionally, fluctuations in the rupee-dollar exchange rate and the movements of the global oil benchmark, Brent crude, are set to play a vital role in shaping market dynamics, experts noted.
“The domestic equity market is poised to be influenced by a combination of global cues, domestic economic indicators, and the investment flows from both foreign and domestic institutional investors. Crucial elements like the rupee’s value and crude oil prices will be significant in determining market directions,” they stated.
“On a global scale, ongoing geopolitical conflicts, notably the Russia-Ukraine situation, continue to present challenges. Nevertheless, recent declines in the dollar index and US bond yields have fostered a more favorable environment for emerging markets such as India,” explained Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd.
From an economic standpoint, key macroeconomic announcements, including retail inflation and industrial production figures from India, alongside the US core CPI, are likely to sway overall market sentiment, Gour added.
In the previous week, the BSE benchmark surged by 1,906.33 points, or 2.38 percent, while the NSE Nifty rose by 546.7 points, or 2.26 percent.
“The shift in Foreign Institutional Investors (FIIs) from being sellers to buyers in early December has significantly altered market sentiments. This change in FII strategy is reflected in stock price fluctuations, especially in large-cap banking stocks where FIIs have previously been sellers,” commented VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
An expert mentioned that the upcoming release of the US CPI inflation data will provide clarity ahead of the Fed’s December meeting.
“Market focus is expected to shift towards macroeconomic indicators like the Index of Industrial Production (IIP) and CPI inflation. Furthermore, the trend of FII inflows, following their recent purchasing activity, will remain a critical area of interest for market participants,” stated Ajit Mishra, SVP of Research at Religare Broking Ltd.
Siddhartha Khemka, Head of Research at Wealth Management, Motilal Oswal Financial Services Ltd, mentioned that this week will witness important economic data releases, including GDP figures from Japan and the UK, alongside China’s CPI and India’s CPI. (PTI)
