Analysts suggest that macroeconomic data, auto sales figures, FII inflows, and worldwide trends will heavily influence this week’s stock markets. Investors will also closely monitor US debt ceiling negotiations and institutional flows.
Santosh Meena, Head of Research at Swastika Investmart Ltd., notes that market participants will monitor institutional flows as simultaneous net buying by both FIIs and DIIs often leads to profit-booking.
The US debt ceiling issue, along with US macroeconomic indicators, US security yields, the dollar index, and crude oil prices, holds significant importance globally.
President Joe Biden states that a resolution to the government’s debt ceiling crisis appears “very close,” though the deadline for potential default was extended to June 5.
Ajit Mishra, VP Research at Religare Broking, highlights the focus on key macroeconomic data, including GDP figures and monthly vehicle sales projections. PMI data for the manufacturing sector is scheduled for Thursday.
Furthermore, the performance of US markets during the ongoing debt ceiling talks will be closely watched.
Last week, the BSE benchmark surged 772.01 points or 1.25 percent, breaking the consolidation phase.
All sectors contributed to the rise, with metals, pharma, and IT emerging as top gainers. The Nifty is poised to set a new high after a consolidation breakout.
Companies such as Adani Ports, IRCTC, and PFC will announce their earnings this week.
Vinod Nair, Head of Research at Geojit Financial Services, attributes the local market’s performance last week to global cues, including concerns about US debt limit discussions, the German recession, and hawkish statements from US Fed officials.
