Market Next Week: Global cues, macro data, and FII flows among others to dictate Indian equities – Know what analysts say

Important factors such as global cues, macroeconomic data, and foreign investors flow to influence the domestic markets next week, analysts said in their expectations. The benchmark indices Sensex and Nifty50 ended around 2 per cent each this week.

Other factors such as currency movement and crude oil trends to also dictate the markets next week, the experts noted.

“The direction of the market in the week ahead will be determined by cues from the global markets, important macroeconomic data points, such as inflation and manufacturing & industrial production data, to be released next week,” Vinod Nair, Head of Research at Geojit Financial Services said.

Another market expert Ajit Mishra, VP - Research, Religare Broking Ltd said, “Participants will be eyeing macroeconomic data viz. IIP, CPI and WPI next week for cues. Besides, the performance of the global markets especially the US would remain on their radar.”

Mishra said the market is now eyeing 18,100 in Nifty however mixed global cues may continue to trigger volatility in between. Since all the sectors are now aligned to the market trend, the focus should more on stock selection, he added.

The market analyst reiterated a preference for leaders like banking, financials, auto, and FMCG and suggest maintaining a selective approach to others; while the broader markets are also seeing decent traction, it’s prudent to stick with the quality names and avoid bottom fishing in laggards.

“Bulls dominated domestic markets this week as the indices moved in tandem with developments in the global markets. Global indices edged higher as investors reassessed the outlook for monetary policy following ultra-hawkish remarks from the Fed chair and 75bps rate hikes by ECB,” Nair said.

While the energy crisis in Europe continued to haunt investors, Chinese policymakers' renewed efforts to strengthen its economy boded well for the Chinese bourses, he said, adding that OPEC+ opted to cut back on output given the faltering global growth outlook to stabilize declining oil prices.

Domestic investors held an upbeat outlook, bolstered by strengthening economic statistics, continued FII inflows, and rising corporate activity, Nair also said. He added that banking and consumption stocks remained top picks during the week.

Consequently, Nifty and Sensex, settled closer to the week’s high at 17,833 and 59,793 levels respectively. All sectors contributed to the move wherein banking and financials led the surge. The broader indices too witnessed decent traction and gained in the range of 2-3.5 per cent.