Analysts: Markets to watch inflation data and global trends in shortened holiday week

The movement of the rupee against the dollar and global oil benchmark Brent crude would also influence trading in the equity market.

New Delhi: Inflation data, global trends and foreign fund trading activity would guide equity market movement in a holiday-shortened week, analysts said. Stock markets would remain closed on Tuesday for Independence Day.

“Macroeconomic indicators, rupee and FII activities will be pivotal in shaping market trends in the coming days. Domestically, inflation figures hold significance. Globally, attention will be directed toward Japan’s inflation data, China’s IIP numbers, and the US retail sales statistics,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

---

On the macroeconomic front, wholesale and retail inflation numbers for July would be announced on Monday.

“India’s WPI and CPI inflation data, exports and imports numbers will be in focus in the coming days. We expect the Indian market will continue to remain rangebound and will take further cues from US jobs data and minutes of the Federal Open Market Committee (FOMC) meeting,” Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said.

Hindustan Copper and ITC would announce their earnings this week.

The movement of the rupee against the dollar and global oil benchmark Brent crude would also influence trading in the equity market.

India’s industrial production growth declined to a three-month low of 3.7 per cent in June mainly due to poor showing by the manufacturing sector, according to official data released on Friday.

The BSE benchmark declined 398.6 points or 0.60 per cent and the NSE Nifty fell by 88.7 points or 0.45 per cent last week.

“The Indian market experienced bearishness during the last week that focused on economic data as inflation concerns dented domestic sentiments,” said Vinod Nair, Head of Research at Geojit Financial Services.