Global trends surrounding the evolving Russia-Ukraine crisis as well as key domestic macro-economic data points will set the course for the Indian equity market’s trajectory in the coming week.
Besides, investors will watch out for fluctuations in crude oil prices and currency movements.
These global trends are also expected to influence the direction of FIIs’ funds which will, in turn, have an overall bearing on the market sentiment.
On last Friday, FIIs net sold Rs 4,470.70 crore worth of equities on the BSE, NSE and MSEI in the capital market segment.
In February 24 trade session, they net sold Rs 6,448.24 crore worth of equities.
“While the developments on the Russia-Ukraine front will keep influencing the directions of the market, resumption of supply disruptions and commodity inflation can hurt a lot of economies at a time when they were starting to recover post Omicron threat,” said Deepak Jasani, Head of Retail of Retail Research, HDFC Securities.
“A sharply positive close for markets in the western countries on Friday could result in a gap up opening on Monday for Indian indices. On rises, Nifty could face resistance from the 16,837-16,900 band, while 16,410 could offer support in the next few days.”
Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said: “Market will be keeping a close watch on the ongoing Russia Ukraine conflict over the weekend for any further cues.”
“For the near term, Thursday’s low of 16,200 may act as a strong support.”
Apart from global cues, crucial data points on the country’s fiscal deficit, Index of Eight Core Industries, and the quarterly GDP growth rate will be keenly watched by the market participants.
Furthermore, monthly automobile sales figures, trade numbers and manufacturing PMI data will be observed in the week ahead.
“Global markets have taken a breather as the fresh US sanctions did not target Russia’s oil exports nor their access to the ‘Swift’ global payment network,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Going ahead investors will keenly watch the release of macroeconomic data points like domestic GDP and manufacturing PMI data.”
(Rohit Vaid can be contacted at firstname.lastname@example.org)