Macro data announcement, quarterly results, RBI interest rate decision and foreign fund movements are the main factors that will guide trading activity in the stock market this week, analysts said. .
Other factors that would influence the trade are global market trends, movements of the rupee and crude oil, they added.
“This week also marks the start of the new month, so attendees will be watching crucial data, namely auto sales and PMI numbers for indices. The highlight would be the meeting of the MPC (Monetary Policy Committee) after recent Fed policy and its outcome is expected for August 5,” said Ajit Mishra, Vice President – Research, Religare Broking Ltd.
PMI (Purchasing Managers’ Index) data for the manufacturing and services sectors is expected in the first half of this week.
On the earnings front, big names like ITC, M&M, Dabur, Titan and Interglobe Aviation, along with several others, will report quarterly results, Mishra added.
Apurva Sheth, Head of Market Outlook, Samco Securities, said the RBI’s interest rate decision will be the main news at home.
“He will be watched closely to see if the MPC takes a more aggressive stance like its Western counterparts or goes its own way,” Sheth added.
The trading activity of foreign institutional investors, a major driver of stock markets, would also be monitored for additional clues.
“This week, traders will be busy with national signals where the RBI policy outcome will be the most important event. Apart from that, monthly auto sales numbers and the next batch of Q1 earnings will be other important domestic factors to drive the market,” Santosh Meena, Head of Research, Swastika Investmart Ltd, said.
The market will also keep an eye on the direction of global markets, crude oil and the dollar index, Meena added.
Over the past week, BSE’s benchmark 30-stock index has jumped 1,498.02 points or 2.67%.
Bulls continued to dominate domestic markets over the past week amid positive global indices, analysts said.
Hemant Kanawala, Senior Executive Vice President and Head of Equity, Kotak Mahindra Life Insurance Company, said on the home front, growth engines remain intact, with the advancing monsoon providing additional comfort. Good monsoon progress and a healthy resumption of planting should further reduce inflation risks, he added.
“Domestic investors are now gearing up for the RBI’s MPC meeting this week,” said Vinod Nair, head of research at Geojit Financial Services.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)