Key triggers for next week: US tariff, PMI, FIIs, and global economic data shaping market outlook
The upcoming week’s market outlook will be influenced by various economic factors both at home and abroad, with significant indicators such as PMI data, foreign institutional investments (FIIs), auto sales figures, and major US economic data releases taking center stage. One of the key events to watch out for is the release of the HSBC Composite PMI data for India on Friday, alongside auto companies beginning to reveal their sales figures starting Monday.
Internationally, market sentiment will be swayed by policy decisions regarding India-US tariffs and the potential consequences of former US President Donald Trump’s announcement of a 25% tariff on finished vehicle imports, scheduled to come into effect on April 3. Furthermore, investor attention will be on US Federal Reserve Chair Jerome Powell’s speech, as well as vital US economic data releases like job openings, non-farm payrolls, and the unemployment rate.
In the previous week, the Indian stock market concluded on a positive note, witnessing gains of around 0.70% for both the Nifty and Sensex, closing at 23,519.35 and 77,414.92, respectively. The rally was largely steered by banking stocks, with Bank Nifty climbing nearly 2% to settle at 51,564.81. Nifty PSE and FMCG emerged as the leading sectoral performers, while media and pharmaceutical stocks lagged.
Foreign institutional investors continued their buying streak, injecting Rs 17,426 crore into equities between March 24 and 28, while domestic institutional investors added Rs 6,797 crore during the same period. This continuous inflow of foreign funds enabled Nifty to register a 6.3% surge in March, recovering from losses in the previous month and ending the month on a strong note.
The Indian stock market will be closed on March 31 in observance of Eid. Puneet Singhania, Director at Master Trust Group, suggested that Nifty holds robust support at 23,300, and a breach of this level could lead to a decline towards 23,000. On the flip side, resistance is identified at 23,800, and a breakout above this level may propel the index towards 24,100, potentially prolonging the current rally.