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Macroeconomic data, global trends key factors to drive trends in markets this week- Analysts

In a data-packed week, the domestic macroeconomic figures — industrial production and inflation numbers — along with global trends would dictate trends in the equity market this week, analysts said.

According to experts, markets may face volatile trends due to high valuations. Equity benchmark indices Sensex and Nifty hit their fresh record peaks on Thursday.

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Besides, trading activity of foreign investors, movement of global oil benchmark Brent crude and rupee-dollar trend would also influence trading in equities.

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“This week’s market focus shifts to inflation data releases. Both India and the US will unveil their Consumer Price Index (CPI) figures on Tuesday. On Thursday, WPI data will be announced.

“Large-cap stocks may continue their outperformance as Foreign Institutional Investors (FIIs) are expected to maintain their buying spree,” Santosh Meena, Head of Research, Swastika Investmart Ltd, said.

Industrial Production data for January and inflation numbers for the month of February is scheduled to be announced on Tuesday.

WPI (Wholesale Price Index) inflation data will be announced on Thursday.

“Inflation data from the US, China, and India will provide investors with insights into the global macroeconomic outlook. We expect volatility to persist in this week due to high valuations and forthcoming policy rate guidance releases,” said Vinod Nair, Head of Research, Geojit Financial Services.

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In a record-breaking rally last week, the BSE benchmark climbed 374.04 points or 0.50 per cent.

Stock markets were closed on Friday for Mahashivratri.

“Apart from the scheduled macroeconomic data, the performance of the global indices would continue to offer cues over market direction. Currently, the US markets are seeing some profit-taking, after a steady uptrend for 4 months. And, that might result in intermediate volatility in our markets too, especially at the open,” Ajit Mishra, SVP- Technical Research, Religare Broking Ltd, said.

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