This week, analysts predict that the movement of the equity market will be driven by the US Fed interest rate decision, global trends, tariff-related developments, and the trading activity of foreign investors. On Monday, the announcement of WPI inflation for February is scheduled as a macroeconomic data release.
Vinod Nair, Head of Research at Geojit Financial Services, mentioned that the market may be influenced by uncertainties surrounding global trade and fears of a US recession. However, factors such as falling crude oil prices, a weakening dollar index, and expectations of a rebound in domestic earnings could provide stability amid trade uncertainties.
China’s upcoming retail sales growth and industrial production data releases, as well as US retail sales and production numbers, will be key highlights for investors this week. Additionally, the Bank of England interest rate decision will also be closely watched.
Last week, the market experienced a decline due to weak global cues linked to US trade policies. This week, analysts anticipate the market to remain range-bound with some volatility and sector rotation driven by global market trends and US tariff policy developments.
Prashanth Tapse, Senior VP of Research at Mehta Equities Ltd, noted investor nervousness surrounding potential tariffs on Indian goods by the US administration. This caution with a negative bias could persist for some time.
In summary, the market outlook for the week includes a mix of global influences, macroeconomic data releases, and ongoing trade developments that will shape investor sentiment and market dynamics.
