Macro-data, oil prices and auto sales to steer Indian stock market direction
mumbai — Macroeconomic data points, coupled with monthly automobile sales’ numbers, are expected to influence the trajectory of the Indian equity market during this week, analysts opined.
Market observers pointed out that global crude oil prices, along with the expectations of a healthy third-quarter earning result season, would also influence the market’s movement.
During the trade week starting today, key macroeconomic data points such as the eight core industries’ output, external debt, PMI numbers and monthly automobile sales’ figures will be released.
“Monthly automobile numbers will be announced leading to some movements in their stock prices,” HDFC Securities’ retail research head Deepak Jasani said.
“Core infra data for November and the PMI manufacturing number will impact market mood in the coming week.”
Edelweiss Professional Investor Research’s chief market strategist Sahil Kapoor said that stocks are likely to see low volume consolidation in the upcoming week.
“The uptrend remains intact and market breadth is improving. More and more stocks are now beginning to trade at multiweek and multi-month highs. This is a positive sign. We continue to believe that Nifty is likely to head towards 13,500 by the second quarter of fiscal year 2021,” he said.
Vinod Nair, head of research at Geojit Financial Services, said: “Global markets seem to be in a comfort zone, fuelled by hopes of easing trade tensions, which will add adequate liquidity to emerging markets like India.”
Sector-wise, Motilal Oswal Financial Services’ retail research head Siddhartha Khemka said: “Going ahead, we believe large private banks, consumer or FMCG, core sectors like cement and capital goods, would do well.”
Furthermore, the movement of the Indian rupee against the US dollar and crude oil prices will also set the course of key indices.
“With crude hovering at more than $68 level... expect the rupee to touch 72 to a dollar, if crude advance continues,” said Sajal Gupta, head of rorex and rates at Edelweiss Securities. —