Mumbai: Indian stock markets are expected to remain volatile this week as investors monitor wholesale inflation data, foreign institutional investor (FII) activity, crude oil prices and developments in West Asia.
Global economic indicators, including US retail sales, Nvidia’s quarterly earnings and Federal Reserve meeting minutes, will also influence market sentiment.
Last week, the BSE Sensex gained 564.43 points, or 0.69%, while the NSE Nifty advanced 113.95 points, or 0.45%.
Inflation And Economic Data
October’s Wholesale Price Index (WPI) inflation and merchandise trade data, scheduled for Monday, November 16, will provide fresh insights into domestic economic conditions.
Ajit Mishra, SVP Research at Religare Broking, said crude oil, the US dollar, Treasury yields and foreign investments would remain important market drivers.
Investors will also assess expectations surrounding the Reserve Bank of India’s December monetary policy review.
FII Buying Supports Markets
Foreign investors have made a strong comeback, investing ₹84,290 crore in Indian equities during the first fortnight of November.
The buying followed two consecutive months of withdrawals, supported by attractive large-cap valuations, falling crude prices and global portfolio adjustments.
Siddhartha Khemka of Motilal Oswal Financial Services expects markets to maintain a positive bias, supported by foreign inflows, domestic fundamentals and encouraging quarterly earnings.
Global Markets In Focus
Nvidia’s earnings, US retail sales, Federal Reserve minutes and American employment data will remain closely watched.
Ponmudi R, CEO of Enrich Money, warned that concerns over expensive artificial intelligence stocks could trigger further technology-sector volatility.
A sharper correction on Wall Street could also affect Indian IT stocks and broader investor confidence.
Also Watch:
Crude Oil And RBI Outlook
Geopolitical tensions in West Asia could influence crude oil prices, creating uncertainty for India’s inflation and corporate profitability.
Higher US Treasury yields and a stronger dollar could also affect capital flows into emerging markets.
Vinod Nair of Geojit Investments said investors would increasingly assess the RBI’s likely policy response ahead of its December meeting.
Analysts expect foreign flows, global economic developments and oil prices to determine near-term market direction.
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