Markets week ahead: Retail inflation data, global cues key factors to watch

Santosh Meena, Head of Research, Swastik Investmart Ltd said, “… volatility in crude oil, dollar index and US bond yields will be other important factors. Institutional flows will be important as FII selling eased after a sustained selloff in January.” Is.”

Foreign Institutional Investors (FIIs) offloaded equity worth net 144.73 crores last week. This week, markets will await key inflation data from the US and India for clues on central banks’ rate hike trajectory.

Retail inflation data for both the US and India are due to be announced on Tuesday. Last week, the Reserve Bank of India (RBI) raised the key benchmark policy rate by 25 basis points to 6.5 per cent, citing sticky core inflation.

Vinod Nair, Head of Research, Geojit Financial Services, said, “The RBI’s monetary policy committee (MPC) meeting, in line with market expectations, raised rates marginally, which was positively received by investors. He has taken a more optimistic view on domestic growth by raising the GDP forecast while cautiously keeping CPI inflation at 5.3 per cent for FY2024.”

During such volatile times, investors need to adopt value buying as a strategy. Nair was quoted as saying by PTI that small-cap companies look attractive in the long term, owing to valuations being reduced near long-term averages.

Apart from this, other companies like Adani Enterprises, Grasim, Eicher Motors, SAIL will announce their quarterly results during this week. Last week, 30-share BSE SENSEX BENCHMARK It closed at 60,682.70, down 159.18 points or 0.26 per cent.

Domestic indices ended the week flatline with a negative undertone as market sentiments were weighed down by prospects of policy tightening. federal Reserve Nair said that a strong job market in the US gives more leeway in implementing tougher policy measures.

(With PTI inputs)