Macroeconomic Data, Q2 Earnings, FIIs Trading Activity To Guide Markets This Week: Analysts

A host of macroeconomic data announcements, the last batch of September quarter earnings, global trends, and trading activity of foreign investors will be the major driving factors for the equity market this week, according to analysts.

Equity markets would remain closed on Friday for Guru Nanak Jayanti.

"India is set to release CPI and IIP data on Nov. 12, with WPI data expected on Nov. 14. Globally, the US inflation report on Nov. 13 will be critical, as it may influence the Federal Reserve's upcoming policy stance," Santosh Meena, Head of Research, Swastika Investmart Ltd., said.

With major global events and Q2 earnings (of blue-chip companies) behind, the market focus will shift to key macroeconomic data and the last round of results, Meena said.

Bank of India, BEML, Hindalco Industries, ONGC, Apollo Tyres, and Brainbees Solutions — the parent firm of online e-commerce platform FirstCry — among others will announce their quarterly earnings this week.

"The performance of US bond yields and the dollar index will be pivotal for emerging markets like India, as both have surged since the US election outcome. Given this backdrop, FIIs (Foreign Institutional Investors) activity will remain a crucial driver for the Indian equity market in the near term," Meena added.

Movement in global oil benchmark Brent crude and the rupee-dollar trend would also guide markets this week, analysts said.

"The outlook for the market will be guided by the major domestic and global economic data such as India's CPI, industrial production, manufacturing output, WPI inflation, US CPI, core CPI, initial jobless claims, UK GDP and China industrial production data," Palka Arora Chopra, Director of Master Capital Services Ltd., said.

Last week, the BSE benchmark declined 237.8 points, or 0.29%, and the Nifty went lower by 156.15 points, or 0.64%.

"The weakness in the Indian market can be attributed largely to the relentless selling by FIIs which continue this month, too," VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd, said, "Markets are expected to remain sideways on the back of mixed global factors and subdued quarterly results. However, there could be stock-specific action on account of the last leg of Q2 earnings to be announced this week."