MACRO DATA, GLOBAL CUES TO GUIDE MARKETS

NEW DELHI: Trading activity in the domestic equity markets this week will be largely driven by inflation data, trend in global markets and foreign fund movement, analysts said.

Participants will also monitor developments related to the Adani Group crisis, which has been a major overhang recently, they added.

“...the movement of crude oil, the dollar index, and US bond yields will be other important factors. The institutional flow will be important as FIIs’ selling has come down after relentless selling in January,” Santosh Meena, head of research at Swastika Investmart Ltd, said.

This week, the market will be awaiting key inflation data from the US and India for clues on the rate hike trajectory of central banks. Retail inflation data for both the US and India is scheduled to be announced Tuesday.

Last week, the Reserve Bank of India (RBI) hiked the key benchmark policy rate by 25 basis points to 6.5%, citing sticky core inflation. “The RBI’s monetary policy committee (MPC) meeting delivered a smaller rate hike in line with market expectations, which was positively welcomed by investors.

Meanwhile, companies such as Adani Enterprises, Grasim, Eicher Motors, SAIL, among others, will announce quarterly results during the week.