Macroeconomic data, including 3QFY16 Gross Domestic Product (GDP) data, Index of Industrial Production (IIP), trend in the global markets and consumer inflation will dictate market trends this week, say experts. "Trend in global markets, the next batch of Q3 earnings, movement of crude oil prices, domestic macroeconomic numbers will dictate trend on the bourses. Indices may seem to continue to trade in a positive zone in the week ahead," said Gaurav Jain, Director, Hem Securities.
Last week the BSE Sensex fell by 253 points to 24,616, while the NSE Nifty declined by 74 points to 7489. The markets rose on the last two trading sessions of the week. The indices rebound as global stocks flared, amid a rise in crude oil prices and indications of further US interest rate hike in Federal Reserve's March FOMC meet greatly reduced.
“Recovery was triggered by sharp recovery in crude oil prices and positive global markets as reduced expectations for further interest rate increases,” said Vivek Gupta, CMT – Director Research, CapitalVia Global Research.
“Nifty rose gradually on Friday in response to report on foreign direct investment (FDI). The report says that India has received $4.5 billion foreign direct investment (FDI) during December 2015, which is more than double against the same period in 2014,” said Jayant Manglik, President, Retail Distribution, Religare Securities.
Among major earnings this week are from Dr Reddy's, Hindalco Industries, Punjab National Bank, GAIL, Cipla, Coal India, State Bank of India, ONGC, Hero MotoCorp, Tata Motors, BHEL, Sun Pharma, Adani Ports and Special Economic Zone.
The “Last batch of Q3 results, Q3 GDP data to dictate near term trend. But Chinese stock markets will remaining closed next week for the Lunar New Year holiday will be the biggest positive factor for the global markets sentiments next week as it removes a potential source of selling pressure,” said Vijay Singhania, Founder-Director, Trade Smart Online.
“Data points for next week included last batch of Q3FY16 results of key corporates and Q3 GDP data to dictate near term trend. Apart from this, the trend in global markets, the movement of rupee against the dollar and crude oil price movement will dictate trend on the bourses in the near term,” added Singhania.
'Macro data signals revival in the economy- sales of heavy duty trucks grew 36% in 2015 compared to previous year, an indication that infrastructure and construction are gaining vibrancy. Services PMI stood at 19 month high and manufacturing recorded a four month high reflecting revival is gaining momentum,” said Jimeet Modi, CEO, SAMCO Securities.