Global Trends, Inflation Data, Earnings to Boost Markets: Analysts
Domestic stock markets are expected to experience volatility in limited trade this week amid geopolitical worries and growing expectations of a sharp rise in interest rates, analysts said.
Global trends, inflation data and the latest batch of quarterly results will boost markets this week, they said. Additionally, the Rupee movement, FII investment pattern and Brent Crude trends would also be watched by investors.
“Global markets are trying to adjust to expectations of a sharp rise in U.S. interest rates after record inflation, but rising geopolitical tensions are trying to make matters worse,” said Santosh Meena, chief executive. of research at Swastika Investmart Ltd.
On the home front, inflation data will be released this week, while the end of the earnings session will impact some individual stocks.
“On the political front, developments in the Assembly polls of Uttar Pradesh, Uttarakhand, Goa, Punjab and Manipur will be closely watched,” Meena said.
The behavior of FIIs will also be an important factor as they sell relentlessly, he added.
Breaking their selling spree, FII were net equity investors on Friday, putting Rs 108.53 croe on a net equity basis. FIIs withdrew more than Rs 14,930 crore on a net basis from the capital markets this month. Except for two sessions, they remained net sellers on the capital markets in February.
Last week, BSE’s 30-stock benchmark fell 491.90 points or 0.83%.
Adani Enterprises, Coal India, Eicher Motors, Ambuja Cements, Nestle India, Spicejet and Jet Airways are among the companies to announce their financial results this week.
“Following the U.S. inflation response, investors around the world will be focused on better understanding Fed action, as minutes from the latest FOMC meeting are about to be released.
“Another important metric to watch will be inflation data in China. D-Street investors will be watching the domestic inflation rate closely to predict its future path. Given these events, markets are largely expected to remain volatile and limited,” he added. said Yesha Shah, head of equity research, Samco Securities.
Benchmarks fell on Friday on strong global equity sales after US consumer inflation soared in January, raising prospects for faster-than-expected rate hikes from the Federal Reserve .
Ajit Mishra, VP of Research, Religare Broking, said, “With major events behind us, the focus would be on global markets and index earnings. first to IIP data on Monday, i.e. February 14. In addition, both CPI inflation and WPI inflation are also scheduled for February 14.”
Global signals such as inflationary concerns and tensions between Russia and Ukraine are currently weighing on sentiment, he added.
Vinod Nair, head of research at Geojit Financial Services, said the direction of the market in the coming week will be determined by signals from global markets, while domestic macro data and corporate earnings will remain in focus at short term.
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