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

The upcoming week’s market outlook will be influenced by various domestic and global economic factors like PMI, FIIs data, auto sales, and significant US economic data, including the Composite PMI and Initial Jobless Claims. On the domestic front, auto companies will release sales data starting Monday, and India’s HSBC Composite PMI data for March is scheduled for release on Friday.

For the global market scene, developments in India-US tariff policies, the impact of the announced 25% tariff on finished vehicle imports by US President Donald Trump effective April 3, and US Fed Chair Powell’s Speech will shape market trends. Additionally, vital economic data such as US job openings, non-farm payrolls, and unemployment rate figures will be unveiled next week.

In the past week, the Indian stock market saw gains, with Nifty and Sensex closing at 23,519.35 and 77,414.92, which translates to a 0.70% increase. The banking sector led the rally, with Bank Nifty closing at 51,564.81, marking nearly a 2% rise. Among sectors, Nifty PSE and FMCG indices observed the most significant gains, while media and pharma sectors ended as the top losers.

Foreign investors continued to show a buying streak last week, with foreign institutional investors (FIIs) investing Rs 17,426 crore between March 24-28. Domestic institutional investors (DIIs) also contributed Rs 6,797 crore to equities during the same period. The Nifty closed with a 6.3% gain in March, reversing the previous month’s downtrend and finishing strongly on the back of consistent foreign inflows.

Indian stock markets will be closed on March 31 for Eid. Puneet Singhania, Director at Master Trust Group, identified strong support for Nifty at 23,300, with a downside potential toward 23,000 if this level is breached. Resistance is foreseen at 23,800, and a breakout beyond this could propel Nifty towards 24,100, potentially extending the ongoing rally.