Key triggers for next week include US tariffs, PMI data, FIIs, and global economic data for market outlook

The upcoming week’s market outlook is poised to be influenced by various economic indicators, both domestically and globally. Key triggers for the market will include PMI and FIIs data, auto sales figures, and essential US economic data such as the Composite PMI and Initial Jobless Claims. On the domestic front, auto companies are scheduled to release their sales data starting Monday, with India’s HSBC Composite PMI data for March set to be unveiled on Friday.

Internationally, market movements will be shaped by the India-US tariff policy, particularly in light of US President Donald Trump’s recent announcement of a 25 per cent tariff on finished vehicle imports effective April 3. Additionally, the market will closely monitor US Fed Chair Powell’s Speech and other significant economic announcements, including US job openings, non-farm payrolls, and the unemployment rate, all slated for release in the coming week.

The previous week saw the Indian stock market concluding on a positive note, with both Nifty and Sensex registering gains of approximately 0.70 per cent to end at 23,519.35 and 77,414.92, respectively. The rally was predominantly driven by banking stocks, with the Bank Nifty climbing nearly 2 per cent to close at 51,564.81. Among sectoral indices, Nifty PSE and FMCG emerged as the top performers, while media and pharma sectors witnessed declines in their indices.

Foreign investors remained active in the market, with foreign institutional investors (FIIs) injecting Rs 17,426 crore between March 24 and 28. In comparison, domestic institutional investors (DIIs) infused Rs 6,797 crore into equities during the same period. The Nifty posted a 6.3 per cent increase in March, reversing the previous month’s downtrend, buoyed by steady foreign inflows. Indian stock markets will observe a holiday on March 31 in celebration of Eid.

Looking ahead, Puneet Singhania, Director at Master Trust Group, highlighted key support and resistance levels for Nifty, indicating that a breach of the support at 23,300 could lead to a decline towards 23,000. Conversely, a breakout above the resistance at 23,800 could propel Nifty towards 24,100, potentially extending the current rally.
In conclusion, the market awaits significant economic data releases, policy developments, and global events that will contribute to shaping market trends and investor sentiment in the upcoming week.