Global trends, domestic macro data to drive markets this week: Analysts

The resurgence of cold war between the U.S. and Russia has brought apprehensions to the market, said Head of Research at Geojit Financial Services

Stock markets this week would take cues from global trends, the announcement of domestic macroeconomic data such as GDP numbers and foreign fund movement, analysts said.

Besides, monthly auto sales and Purchasing Managers’ Index (PMI) data for manufacturing and services sectors would also influence trading in the market, they added.

Benchmark BSE Sensex tumbled 1,538.64 points or 2.52% last week amid concerns that the US Federal Reserve might raise interest rates further to curb inflation. Fresh foreign fund outflows also dented investor sentiments.

Pressurised by weak global cues, most sectoral indices traded in sync with the benchmark and ended lower.

"The market will continue to keep an eye on the direction of global markets along with the movement of US bond yields and the dollar index in the near term because the interest rate scenario in the US will remain a dominating factor in the first half of 2023.

"The market isn't currently responding to the geopolitical situation all that much, but any unexpected development — positive or negative — could cause the market to move significantly. Domestically, our Q4 GDP numbers and monthly auto sales numbers will be key macro factors this week," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Trading in the market will also be guided by Brent crude oil movement and the rupee-dollar trend.