Markets to track inflation data, global factors this week: Analysts

Inflation data, global trends and foreign fund trading activity are the major factors that would drive the domestic equity market this week, said analysts.

The last batch of the ongoing quarterly earnings would also influence trading, they added.

Unabated foreign fund inflows and a rally in global equities drove the equity benchmarks higher on Friday.

The 30-share BSE benchmark Sensex on Friday zoomed 1,181.34 points or 1.95 per cent to settle at 61,795.04 — surpassing its previous closing peak of 61,765.59 hit on October 18, 2021.

“The sentiment will continue to be driven by the movement of the world markets. The market will be keeping an eye on our domestic inflation statistics,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

Ajit Mishra, VP – Research, Religare Broking Ltd, said, participants will be eyeing crucial macroeconomic data — CPI and WPI inflation for cues.

Besides, the performance of global indices and foreign flow trends will also remain on their radar, Mishra noted.

“As we enter the last leg of the earnings season, companies like Bharat Forge, Grasim, ONGC and IRCTC will announce their numbers along with several others,” Mishra added.

Investors would also keep a track on trend in rupee and movement of Brent crude oil.

“A flurry of economic data is due to be announced this week on a global scale. Because the battle against inflation is far from over, market investors will be watching the inflation numbers from the United Kingdom and India with bated breath,” said Apurva Sheth, Head of Market Perspectives, Samco Securities.

Vinod Nair, Head of Research at Geojit Financial Services, said FII inflows have been a strong pillar for the domestic market in November, which can be estimated to improve further as US treasury yields are on the declining slope.

Last week, the BSE benchmark jumped 844.68 points or 1.38 per cent.

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