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Macro-economic data to drive Indian equities markets in the coming weeks

Bse-IndiaAcceleration in the reforms process, coupled with upcoming macroeconomic numbers and cues on the winter session of parliament, will set the tone for the Indian equities markets during the upcoming weekly trade.

Hopes of the goods and services tax (GST) bill getting passed during the winter session beginning Nov 26 is expected to support the key bellwether indices.

“After the Bihar outcome, the foreign direct investment (FDI) reform has revived some of the weak sentiments,” said Devendra Nevgi, chief executive of ZyFin Advisors.

“Again eyes will be on the winter session of parliament and what US Federal Reserve does in December, as strong data has raised the probability of a hike.”

Attractive valuation on account of three consecutive weeks of slide too will count as a major trigger for the bellwether indices. Value buying opportunity is expected to lure back the evasive foreign investors.

“Interests of foreign portfolio investors (FPIs) and commodity price trends will dictate the bourse’s trajectory,” Gaurav Jain, director with Hem Securities, elaborated.

“Nifty may see a pullback in the week with major support at 7,500 points level.”

Foreign investors went in for a selling frenzy during the last week. According to the National Securities Depository Limited (NSDL) the FPIs bought Rs.1,536.8 crore or $ 233.23 million in equity and debt markets during November 9-13.

The data with stock exchanges showed that the FPIs sold stocks worth Rs.2,281.64 crore in the period under review.

On the other hand, the domestic institutional investors (DIIs) bought stocks worth Rs.1,360.92 crore during the last trading week.

The flight of foreign capital from Indian exchanges impacted the rupee value. On a week-on-week basis, the rupee weakened by 34 paise to 66.10 to a US dollar (November 13) from its previous close of 65.76 to a greenback (November 6).

Besides, Bihar poll rout for the central government, domestic macro numbers such as wholesale price index (WPI), balance of trade (BoP) and reserve banks’ take on the lackluster industrial output and marginal uptick in inflation will dictate the trajectory of Indian stocks.

“Investors will watch out for October trade data and for any arrest in declining exports,” said Vaibhav Agrawal, Vice President, Research, Angel Broking.

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