Macroeconomic Data, Global Cues & FII Trading Activity To Guide Indian Stock Markets This Week: Analysts

New Delhi: Indian stock markets are expected to remain guided by key macroeconomic data, global developments and foreign investor activity in the week ahead, according to market experts. After a strong start to 2026, investors are now closely watching economic indicators and the early phase of the corporate earnings season for fresh direction.

Domestic Data and Earnings in Focus

This week will be important on the domestic front as investors track the final readings of the HSBC Services PMI and Composite PMI. These data points will offer clarity on business activity, demand conditions and employment trends in the services sector, which plays a major role in India’s economy.

At the same time, market attention is gradually shifting toward the Q3 earnings season. IT majors TCS and HCL Technologies will kick off earnings announcements on January 12. Analysts believe investors may take selective positions in frontline stocks ahead of results from key index heavyweights.

Strong buying by domestic institutional investors (DIIs) has continued to support market sentiment. Their steady capital inflows helped Indian equities end last week on a positive note.

Global Factors to Shape Sentiment

Globally, investors will keep a close eye on US macroeconomic data, especially non-farm payrolls and unemployment figures. These numbers could influence expectations around US Federal Reserve interest rate decisions, which often impact global liquidity and risk appetite.

Economic data from China will also be watched for signals on growth, demand and inflation trends. Any major surprise on the global front could lead to short-term volatility in Indian markets.

Market Performance and Outlook

Last week, the BSE Sensex rose over 720 points, while the Nifty climbed more than 286 points and touched a fresh all-time high of 26,340. Foreign Institutional Investors (FIIs) also turned net buyers on Friday, purchasing equities worth nearly Rs 290 crore.

Experts say factors like the rupee’s movement against the US dollar and changes in crude oil prices will also influence market direction. Despite global uncertainties, analysts remain cautiously optimistic, citing strong domestic fundamentals, earnings visibility and steady consumption trends as key positives for 2026.