A file photograph of a girl passing by an digital inventory ticker on the Bombay Stock Exhange (BSE) in Mumbai. Stock markets this week would take cues from international traits, the announcement of domestic macroeconomic data equivalent to GDP numbers and international fund motion, analysts mentioned. Image for representational functions solely.
| Photo Credit: Paul Noronha
Stock markets this week would take cues from international traits, the announcement of domestic macroeconomic data equivalent to GDP numbers and international fund motion, analysts mentioned.
Besides, month-to-month auto gross sales and Purchasing Managers’ Index (PMI) data for manufacturing and providers sectors would additionally affect buying and selling available in the market, they added.
Benchmark BSE Sensex tumbled 1,538.64 factors or 2.52% final week amid issues that the US Federal Reserve would possibly increase rates of interest additional to curb inflation. Fresh international fund outflows additionally dented investor sentiments.
Pressurised by weak international cues, most sectoral indices traded in sync with the benchmark and ended decrease.
“The market will continue to keep an eye on the direction of global markets along with the movement of US bond yields and the dollar index in the near term because the interest rate scenario in the US will remain a dominating factor in the first half of 2023.
“The market is not at the moment responding to the geopolitical state of affairs all that a lot, however any surprising improvement — constructive or destructive — might trigger the market to transfer considerably. Domestically, our This fall GDP numbers and month-to-month auto gross sales numbers will likely be key macro components this week,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Trading in the market will also be guided by Brent crude oil movement and the rupee-dollar trend.
“The markets might proceed to witness intermittent bearish spells as buyers are probably to lower their lengthy positions owing to a number of destructive components,” Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities Ltd, said.
“With the start of the brand new month, members will likely be eyeing essential macroeconomic and high-frequency data throughout the week. To begin with, GDP data and core sector data are scheduled on February 28. Besides, PMI manufacturing and providers data will likely be unveiled on March 1 and March 3, respectively.
“The auto sales numbers will also start pouring in from March 1. Apart from the domestic data, global market performance, and movement of crude and rupee will remain on participants’ radar,” mentioned Ajit Mishra, VP – Technical Research, Religare Broking Ltd.
The resurgence of the chilly conflict between the US and Russia has additionally introduced apprehensions to the market, mentioned Vinod Nair, Head of Research at Geojit Financial Services.
“Although it should be a short-term effect, the fear of sanctions against Russia and its degree of implication on the economy, especially food and oil exports, is adding to the anxiety,” Nair added.
