File photo of a woman walks past an electronic stock ticker at the Bombay Stock Exchange (BSE) in Mumbai. Analysts said this week stock markets would take cues from global trends, announcement of domestic macroeconomic data such as GDP numbers and foreign fund movements. Image for representational purposes only. , Photo Credit: Paul Noronha
Analysts said this week stock markets would take cues from global trends, announcement of domestic macroeconomic data such as GDP numbers and foreign fund movements.
Besides this, the monthly Auto Sales and Purchasing Managers’ Index (PMI) data for manufacturing and service sectors will also impact trade in the market, he said.
The benchmark BSE Sensex fell 1,538.64 points, or 2.52%, last week amid concerns that the US Federal Reserve may raise interest rates further to curb inflation. Fresh foreign fund outflows also weighed on investor sentiment.
Most sectoral indices traded in line with the benchmarks and closed with losses under pressure from weak global cues.
“Markets will continue to watch the direction of global markets as well as US bond yields and dollar index in the near term as the interest rate scenario in the US will continue to be a major factor in the first half of 2023.
“Markets are currently not responding that much to the geopolitical situation, but any unexpected development – positive or negative – could cause the market to move significantly further. Domestically, our Q4 GDP numbers and monthly Auto sales numbers will be the key macro factor for the week,” said Santosh Meena, head of research, Swastika Investmart Ltd.
The trading in the market will also be guided by the movement of Brent crude oil and the rupee-dollar trend.
“Markets may continue to witness an intermittent bearish phase as investors are likely to cut their long positions due to multiple downside factors,” said Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities Ltd.
“With the start of the new month, participants will be eyeing important macroeconomic and high-frequency data during the week. For starters, GDP data and core sector data are scheduled for February 28. Also, PMI manufacturing and services The data will be unveiled on March 1 and March 3 respectively.
“Auto sales data will also start coming in from March 1 onwards. Apart from domestic data, global market performance and movement of crude oil and rupee will be on the radar of participants,” said Ajit Mishra, vice-technical research, Religare Broking Ltd. ,
Vinod Nair, Head of Research, Geojit Financial Services, said resurgence of the Cold War between the US and Russia has also created apprehensions in the market.
“While this should be a short-term effect, the fear of sanctions against Russia and the degree of its impact on the economy, particularly food and oil exports, are raising concerns,” Nair said.