Mideast concerns, inflation to drive India equity indices

mumbai — Tensions in the Middle East, coupled with the release of key macro-economic inflation data points and the ongoing quarterly results season, are expected to determine the trajectory of equity indices next week.

Market observers opined that the rupee’s value against the US dollar, along with crude oil prices and the direction of foreign funds, will also impact investors’ risktaking appetite.

“Developments in the Middle East will remain the top-most priority for investors post the USNorth Korean tensions,” Dhruv Desai, director and chief operating officer of Tradebulls, said:“All eyes will be on Saudi Arabia, as

All eyes will be on Saudi Arabia, as any escalation in the regional stand-off will trigger volatility in global trade Dhruv Desai, Director and COO, Tradebulls

any escalation in the regional stand-off will trigger volatility in global trade.”

Apart from the geo-political tensions, investors will look out for the upcoming macro-economic inflation data point of Consumer Price Index (CPI).

“For the week ahead, CPI and WPI (Wholesale Price Index) inflation are key data to be watchful of... CPI and WPI are expected to rise,” said Vinod Nair, research head at Geojit Financial Services.

On a weekly basis, the Indian rupee had weakened by 61-62 paise to close at 65.16-17 against the US dollar.

In terms of foreign equity investment, provisional figures from the stock exchanges showed that FIIs off-loaded stocks worth Rs 4,043.5 crore.

Consequently, the barometer 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange (BSE) declined by 371 points, or 1.10 per cent, to close at 33,314.56 points. Similarly, the broader Nifty50 of the National Stock Exchange (NSE) receded by 130.75 points, or 1.25 per cent, to close at 10,321.75 points.