Weekly Market Outlook: Tracking Indices for Inflation Data, Global Trends, and FII Trading
Investors, brace yourselves for an eventful week ahead! Analysts are forecasting a mix of global and domestic influences that could sway market sentiments, including the trading activity of foreign investors, global economic trends, and crucial data points being released this week. The rupee-dollar exchange rate and Brent crude oil prices are also expected to be key factors in driving market direction.
Geopolitical tensions, such as the Russia-Ukraine conflict, are adding some complexity to the global landscape. However, recent shifts in the dollar index and US bond yields are creating a more favorable backdrop for emerging markets like India, according to Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd.
Keep an eye out for significant economic releases, including retail inflation and industrial production data from India, as well as US core CPI numbers. Last week saw a positive uptick in market performance, with the BSE benchmark climbing 2.38% and the NSE Nifty up by 2.26%.
The shift in strategy by Foreign Institutional Investors (FIIs), who have turned buyers in December after a period of selling, is reshaping market dynamics. Large-cap banking stocks, in particular, are showing movements in response to FIIs’ buying behavior, shared VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
As we await the US CPI inflation data, experts suggest that attention will pivot towards key macroeconomic indicators like IIP and CPI inflation. Market participants are likely to closely monitor the trend of FII inflows following their recent increased buying activity, explains Ajit Mishra, SVP, Research at Religare Broking Ltd.
This week also promises critical economic data releases, including GDP numbers from Japan and the UK, as well as China’s CPI and India’s CPI, according to Siddhartha Khemka, Head of Research at Wealth Management, Motilal Oswal Financial Services.
Stay informed, buckle up for the ride, and keep an eye on these market developments that could shape the week ahead!
