This Week in the Stock Market: Macroeconomic Data and US Tariffs

Stock market investors will be closely monitoring various macroeconomic data releases this week, including industrial production numbers, US tariff-related developments, and global trends that may impact market sentiment, analysts have pointed out.

In addition to these factors, experts also highlighted that foreign investors’ trading activity and fluctuations in crude oil prices will be significant areas of focus throughout the week.

“This week will see the release of several crucial economic data points from both India and the United States, which are expected to have an impact on market sentiment and the outlook for central banks. Starting on June 30, India will announce the Industrial Production (YoY) figures for May,” noted Bajaj Broking Research.

Furthermore, attention will shift to the manufacturing PMI for June on July 1, which will provide insights into the health of India’s industrial sector and order inflows. This will be followed by the services PMI announcement on July 3.

Last week, equity benchmarks experienced a notable rally attributed to reduced geopolitical tensions in the Middle East and a significant drop in crude oil prices. The BSE benchmark soared by 1,650.73 points or 2 percent, while the Nifty rose by 525.4 points or 2 percent.

With the start of the first-quarter earnings season approaching, investors are now turning their focus towards corporate results to gain early insights into growth trends. Additionally, there is growing anticipation surrounding trade agreements that the US is expected to finalize with major global partners in the upcoming week.

Moreover, market participants are closely monitoring key economic indicators including the US non-farm payroll and unemployment figures, along with India’s industrial production data, to assess the strength and direction of the economic recovery at both domestic and international levels, highlighted Vinod Nair, Head of Research at Geojit Investments Limited.

For the fourth consecutive trading session leading up to Friday, stock markets witnessed significant rallies. In the past four days of trading, the BSE benchmark Sensex surged by 2,162.11 points or 2.64 percent, and the NSE Nifty climbed by 665.9 points or 2.66 percent.

Looking ahead, Siddhartha Khemka, Head of Research at Wealth Management, Motilal Oswal Financial Services Ltd, predicted a steady uptrend in the market, supported by improving institutional inflows and the prospects of a US-India trade deal.

Moreover, Ajit Mishra, SVP of Research at Religare Broking Ltd, emphasized that high-frequency data such as IIP and PMI figures, along with updates on monsoon progress and FII activity, will be critical factors in assessing short-term market trends.