Macro data, global trends to dictate stock markets this week: analysts

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Domestic stocks will be guided by macroeconomic data, auto sales figures and global trends this week, analysts said.

Benchmarks hit new closing highs on Friday, with the 30-stock BSE index closing for the first time above the 56,000 mark. On Friday, the market capitalization of BSE-listed companies hit a record high of 2,43.7,800.36 crore rupees.

“Markets could be affected by a turbulent economic calendar that begins with quarterly GDP growth rate figures, followed by auto sales figures and manufacturing PMI data,” according to a note from Samco Securities Research.

Markets would also continue to monitor COVID-19 trends and the pace of vaccination.

Over the past week, the benchmark BSE has gained 795.40 points or 1.43%.

Nationally, the results season has ended with better than expected deliveries and now with the vaccination campaign underway, the economic recovery is expected to accelerate. However, the strong outperformance over the past 18 months had raised concerns on the valuation front.

“From a long-term perspective, the overall market trend remains positive thanks to the opening of the economy, improving economic data points and the resumption of vaccinations”, Siddhartha Khemka, Head – Retail Research, Broking & Distribution, Motilal Oswal Financial Services Ltd. noted.

The performance of the shares will also depend on the performance of the Rupee and Brent crude. Markets may also react to the results of the Jackson Hole Economic Symposium.

Wall Street hit record highs on Friday after U.S. Federal Reserve Chief Jerome Powell said the central bank was still a long way from pulling interest rates from their all-time low.

Powell, however, mentioned that the U.S. economy has taken an important step the central bank has set itself to slow down the $ 120 billion in bond purchases it makes each month.

Investors, who eagerly awaited the Fed chief’s speech at the Jackson Hole Symposium, called his comments “dovish” and expressed hope that the Fed will continue to support the market with low interest rates. .

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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