Macro data, global cues to set the tone for markets

New Delhi: Trading activity in the equity markets will be guided by a host of macroeconomic data announcements scheduled during the week, apart from global trends amid ongoing concerns over high inflation, analysts said. Foreign institutional investors (FIIs), a key driver for the Indian markets, would also be tracked for cues, they added.

"Market will remain busy with macro numbers this week where GDP, auto sales and PMI numbers will be factors on the domestic front, whereas PMI numbers of various countries and unemployment data of the US will be important global macro numbers. Amid all this, movement of dollar index and crude oil prices will continue to have an impact on market volatility. FIIs are still in selling mode where it will be interesting to see whether they start some buying in the Indian market amid improved sentiments," said Santosh Meena, Head of Research, Swastika Investmart Ltd. In the last batch of earnings, companies like Aurobindo Pharma, Jindal Steel and Sun Pharma will announce their numbers.

"This week marks the beginning of the new month also and participants will be closely eyeing important high-frequency data like auto sales, manufacturing and services PMI data. Before that, GDP data, which is scheduled on May 31, will be in focus. Apart from these, updates on monsoon progress will also remain on radar," said Ajit Mishra, V-P (research), Religare Broking Ltd.

Last week, the Sensex jumped 558.27 points or 1.02 per cent and the Nifty gained 86.30 points or 0.53 per cent. Vinod Nair, Head of Research at Geojit Financial Services, said, "Towards the end of the last week, the market was able to recoup its losses following favourable retail earnings in the US and reduced FII selling. For this to sustain, the actions undertaken by the Fed and RBI in June will be an important factor." Moreover, movement of Brent crude oil and rupee against the US dollar would also be monitored by investors. Yesha Shah, Head of Equity Research, Samco Securities, said, "In India, amidst global recessionary worries, data on Indian GDP growth is eagerly awaited. Apart from the GDP print, the monthly sales of auto companies will also be in the limelight. Given the series of data releases, this week will undoubtedly be eventful."