Macro data, RBI policy, updates on Russia-Ukraine war crisis to drive markets next week: Analysts

Domestic macroeconomic data, RBI policy and developments related to the Russia-Ukraine war would be major driving factors for the stock market this week, analysts said.

Moreover, FPI investment and trends in crude oil would also influence the trading sentiment, they added.

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"This week, the RBI credit policy will be a critical factor for Indian markets. It will be important to see how FIIs will behave in FY23 after relentless selling in the second half of FY22. However, they have changed their gear in the last week," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

"With the beginning of the new fiscal year, markets will be closely eyeing the MPC's monetary policy review outcome scheduled on April 8. On the macro front, participants will be eyeing manufacturing and services PMI data on April 4 and April 6, respectively.

"Amid all, global cues viz updates on Russia-Ukraine war, and movement of crude will remain in focus," said Ajit Mishra, VP Research, Religare Broking.

Mishra added that markets are moving largely in sync with their global counterparts and positive developments on the Russia-Ukraine front could further fuel the rebound.

"We expect stock-specific moves on earnings expectations," he noted.

Last week, the Sensex zoomed 1,914.49 points or 3.33 per cent while the Nifty climbed 517.45 points or 3.01 per cent.

Equity markets began the new financial year with smart gains on Friday, with the Sensex rallying over 708 points to recapture the 59,000-mark.

Yesha Shah, Head of Equity Research, Samco Securities, said, "FOMC (Federal Open Market Committee) minutes which will be published this week will influence markets globally. Back home, the RBI's MPC meeting will be the talk of the town, driving market sentiment."

For the 2021-22 fiscal, the BSE Sensex jumped 9,059.36 points or 18.29 per cent, and the Nifty rallied 2,774.05 points or 18.88 per cent.

"In the coming days, the major focus of the market will be on Russia-Ukraine war, movement in crude prices and RBI's policy announcement due this week," according to Vinod Nair, Head of Research at Geojit Financial Services.