The stock markets had a good run this past week, buoyed by continuing Middle East ceasefire. But investors' and traders’ approach to the coming week may be more conservative as they wait and watch macroeconomic data announcements, US tariff-related developments and other global trends, say analysts.
Stock market investors’ sentiment may be influenced by trading activity of foreign investors and crude oil prices, say experts.
According to Bajaj Broking Research, India’s June 30 week would begin with the release of Industrial Production (YoY) for May.
“On July 1, attention will turn to the manufacturing PMI for June, which reflects the health of India’s industrial sector and order inflows. This will be followed by the services PMI on July 3. Economic data releases from the United States are also likely to influence market sentiment and central bank outlook,” they said.
Also Read: India’s forex reserves dip by $1.02 billion this week
Equity benchmarks staged a sharp rally last week helped by easing geopolitical tensions in the Middle East and a steep decline in crude oil prices.
Last week, the BSE benchmark surged 1,650.73 points or 2 per cent, and the Nifty climbed 525.4 points or 2 per cent.
With the first quarter earnings season drawing near, investors are turning their focus to corporate results for early indications of growth trends, opines Vinod Nair, Head of Research at Geojit Investments Limited.
“There is also heightened anticipation around trade agreements that the United States is expected to finalize with major global partners in the coming week. In addition, market participants are closely watching key economic indicators such as the United States non-farm payroll and unemployment figures, along with India’s industrial production data, to gauge the strength and trajectory of the economic recovery both domestically and internationally,” he said.
In the past four trading days, the BSE benchmark Sensex jumped 2,162.11 points or 2.64 per cent and the NSE Nifty climbed 665.9 points or 2.66 per cent.
Siddhartha Khemka, Head of Research, Wealth Management, at Motilal Oswal Financial Services Limited, said they expected the market to witness a steady uptrend, supported by improving institutional inflows and prospects of a US-India trade deal.
“Domestically, high-frequency data such as IIP and PMI figures will be in focus, along with monsoon progress and FII activity, to gauge short-term market trends,” said Ajit Mishra, SVP, Research, Religare Broking Limited.
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