US interest rate decisions, global trends, tariff-related developments and trading activities of foreign investors will drive stock market movements this week, analysts said.
In the release of macroeconomic data, WPI inflation in February is scheduled to be announced on Monday.
“The persistent uncertainty surrounding global trade and fear of the US recession could continue to affect the momentum of the domestic market,” said Vinod Nair, director of research at Geojit Financial Services.
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However, he said the recent revised valuation easing is expected to limit volatility and contribute to stability amidst trade dysfunction, along with supportive factors such as a decline in crude oil prices, the easing dollar index and expectations for a rebound domestic revenue for the next quarter.
“This week’s release of China’s retail sales growth data and industrial production data will provide a clearer understanding of China’s economic growth outlook,” Nia said.
Investors will also closely monitor US retail sales and production numbers, he added.
Among other global events, BOE (Bank of England) interest rate decisions are also tracked.
The escalation of global trade tensions and the US recession has greatly overwhelmed investors’ sentiment last week.
“Last week, the NIFTY-50 fell 0.7% at the 22,397 level due to weak global queues caused by uncertainty over US trade policy.
“This week we expect the market will remain bound by scope with some degree of volatility and sector rotation driven by global market trends and continued development in US tariff policy,” said Siddhartha Khemka, Head Research, Wealth Management and Motilal Oswal Financial Services.
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BSE Benchmark Sensex, shortened to last week’s holiday, reduced 503.67 points (0.67%), while NSE Nifty soaked 155.21 points (0.68%).
“As investors are nervous about the possibility of tariffs on Indian goods by the Trump administration and the overall impact of that could progress, keeping watch over negative biases could potentially win for a while.”
