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As Indian stocks look for direction, all eyes are on inflation, FII trading, and international markets.

As Indian stocks look for direction, all eyes are on inflation, FII trading, and international markets.

Numerous domestic and international macroeconomic data announcements this week will influence investor mood.

According to analysts, a variety of domestic and international macroeconomic data announcements this week, as well as foreign investor trading activity and global stock movements, may influence investors' attitudes.

The Impact of Brent Crude and the Rupee-Dollar Trend

Experts stated that the movement of Brent crude, the world's oil benchmark, and the rupee-dollar trend will also play a significant role in setting market terms.

Important Domestic and International Influencers

"A combination of home economic indicators, international cues, and the movement of capital from both domestic and foreign institutional investors are likely to influence the domestic stock market. Important variables that will influence market patterns include the price of crude oil and the rupee's exchange rate.

Growing Markets and Geopolitical Tensions

Geopolitical tensions, especially the current conflict between Russia and Ukraine, continue to be a problem on a global scale. Nonetheless, recent drops in US bond yields and the dollar index have improved the climate for developing nations like India, according to Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd.

Using Macroeconomic Information to Influence Attitude

Significant macroeconomic reports, such as US core CPI and retail inflation and industrial output statistics from India, are anticipated to impact market sentiment overall, Gour continued.

Current Market Results

The NSE Nifty increased 546.7 points, or 2.26 percent, last week, while the BSE benchmark increased 1,906.33 points, or 2.38 percent.

The Strategy of Foreign Institutional Investors (FIIs)

The market sentiment has changed as a result of FIIs switching to buying in early December, which is a complete reversal of their consistent selling approach over the previous two months. Stock price swings are reflecting the shift in FII (Foreign Institutional Investors) strategy, especially in large-cap banking equities where FIIs have been selling. Chief Investment Strategist at Geojit Financial, VK Vijayakumar said.

Fed Insights and US CPI Inflation

The Fed's December meeting will be influenced by the release of US CPI inflation figures, according to an analyst.

Pay Attention to Homegrown Economic Data

It is anticipated that the markets would focus on macroeconomic metrics such as CPI inflation and IIP. Furthermore, market participants will continue to pay close attention to the pattern of FII inflows after their recent buying binge, according to Ajit Mishra, SVP, Research, Religare Broking Ltd.

Important Releases of Global Economic Data

According to Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd., this week will see the release of important economic statistics, such as the GDP figures for the UK and Japan as well as the CPIs for China and India.


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