Macroeconomic data, global trends, quarterly earnings to guide market trends this week

Movement of rupee against dollar, Brent crude price would also guide trading pattern


Domestic macroeconomic data announcements, global trends, quarterly earnings and foreign fund trading activity would dictate terms in the equity markets this week, analysts said.

Besides, movement of rupee against the US dollar and global oil benchmark Brent crude price would also guide the trading pattern in the equity markets.

"From a macroeconomic perspective, market participants will be closely observing key events like the upcoming release of the US manufacturing PMI data, US services PMI data and US non-farm payrolls scheduled between August 1 and August 4.

"These indicators can provide valuable insights into the state of the global economy and may impact market sentiment. Additionally, institutional activity will also have a significant impact on market trends," said Pravesh Gour, senior technical analyst, Swastika Investmart Ltd.

Among domestic macroeconomic numbers, PMI data for manufacturing and services sectors will be announced on Tuesday and Thursday, respectively.

Adani Green Energy, Adani Transmission, GAIL, Ambuja Cements, InterGlobe Aviation, Titan, Adani Enterprises, Mahindra & Mahindra and State Bank of India would announce their June quarter earnings during the week.

"Apart from earnings, we have been closely following the performance of global indices for cues and the prevailing buoyancy in the US markets gives us the comfort to hold the bullish view," Ajit Mishra, SVP- Technical Research, Religare Broking Ltd, said.

Auto companies would remain in focus earlier this week amid monthly sales data announcements.

"In the coming days, domestic earnings will remain a crucial driver, while global cues will also play a vital role in shaping market trends," said Vinod Nair, Head of Research at Geojit Financial Services.

Last week, the BSE benchmark fell by 524.06 points or 0.78 per cent. Markets ended four-week long gaining streak and finished lower, taking a breather after the recent surge.

On July 28, the 30-share BSE Sensex fell by 106.62 points or 0.16 per cent to settle at 66,160.20. The NSE Nifty declined 13.85 points or 0.07 per cent to finish at 19,646.05.

The BSE benchmark had hit its lifetime peak of 67,619.17 on July 20.

"Market will keep an eye on the manufacturing data to be released this week both - globally as well as locally. Also, the Bank of England will announce its rate decision on Thursday. Auto sector will be in focus as companies would announce their monthly sales numbers," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said.


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