market movements
The direction of the stock market will be decided this week by macroeconomic data, FII movements and global trends. It is noteworthy that a new calendar year and a new month will also begin from this week. Market experts say that the market is likely to remain in a limited range due to no significant trigger in the near future. Investors will also keep an eye on the movement of the rupee, which on Friday suffered its biggest decline in almost two years, after which the rupee reached its lowest level ever. Santosh Meena, head of research at Swastika Investmart, said persistent selling by FIIs (foreign institutional investors) has been a source of pressure on Indian markets. Their stance in the new year could shape near-term trends. Meanwhile, vehicle sales figures will also be closely monitored. With the financial results of the third quarter coming out, the market movement will also be affected by it.
These global factors will impact the market
Meena said that on the international front, key economic indicators like manufacturing PMI data from China and the US and US unemployment claims will play an important role. However, he said the dollar index and US bond yields remain the most important factors influencing the direction of global markets. Vehicle stocks will also be in the news this week amid the announcement of monthly sales figures. As we enter the new calendar year and month, vehicle sales data will be closely watched for early market signals, said Ajit Mishra, senior vice president (research), Religare Broking Ltd. In the absence of any significant developments, focus is likely to remain on FII flows and currency movements, especially with the rupee weakening against the US dollar. These factors may play an important role in deciding the direction of the market in the near future.
Investors will keep an eye on the results of companies
Vinod Nair, Head of Research, Geojit Financial Services, said that looking into the future, the market is likely to pay a lot of attention to the upcoming third quarter results, which will play an important role in deciding the direction of the market. “Investors are likely to align their portfolios based on pre-Budget expectations.” He said that apart from this, key figures like PMI data of India, America and China and unemployment claims in America will affect the sentiment of investors. One analyst said there has been consolidation with intraday volatility over the past week. He said FIIs traded less due to Christmas and New Year holidays and they remained net sellers.
Market likely to remain within limited range
Master Trust Group Director Puneet Singhania said the market trend will be guided by key domestic and global economic data like India infrastructure data, manufacturing PMI, UK S&P global manufacturing PMI, US initial unemployment claims. Siddharth Khemka, head of research (wealth management), Motilal Oswal Financial Services Ltd, said the market is likely to remain range-bound with no significant triggers in the near future.
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