Analysts said the stock markets would be largely driven by macroeconomic data, auto sales numbers, FII inflows and global trends this week.
US debt ceiling talks and institutional flows will also be watched by investors.
Research Head Santosh Meena said, “This week market participants will be closely watching the institutional flow, as there is a historical observation that when both FIIs and DIIs turn net buyers, there is a possibility of some profit-booking in the market. Swastika Investmart Limited
Meena said that on the global front, US macroeconomic indicators, volatility in US bond yields, dollar index and crude oil prices as well as the issue of US debt ceiling are of crucial importance.
President Joe Biden said a deal to resolve the government’s debt ceiling crisis seemed “very close” late Friday, even as a potentially catastrophic default deadline was pushed back to June 5. Was.
“At the domestic level, focus will be on key macroeconomic data, including GDP figures and monthly auto sales numbers,” he added.
“This week also marks the start of a new month, so participants will be eyeing high-frequency data. Auto sales, manufacturing PMI and services PMI data. Before that, GDP data due on May 31 will also be on their radar,” said Ajit Mishra, VP Research, Religare Broking.
The PMI data for the manufacturing sector is due on Thursday.
He said that apart from these factors, the performance of the US markets amid the ongoing debt ceiling talks would also be taken into account.
Last week, the BSE benchmark jumped 772.01 points or 1.25 per cent.
Stock markets ended a two-week consolidation phase and rose over one and a half percent.
“After a strong opening, the benchmarks remained range-bound in the middle, tracking mixed global cues, however a strong recovery in the final sessions changed the tone. As a result, Nifty managed to cross the barrier at 18,400 and closed at the week’s high of 18,499.30,” said Mishra.
All sectors contributed to the move with metals, pharma and IT being the top gainers. The rally continued on the broader front, with the midcap index hitting new highs.
“Nifty looks fresh higher after consolidation breakout, thanks to better participation from all sectors. However, stability on the global front will be important otherwise the momentum may get derailed,” Mishra said.
“As we enter the last leg of the earnings season, we have companies like Adani Ports, IRCTC and PFC announcing their numbers during the week,” Mishra said.
Vinod Nair, head of research at Geojit Financial Services, said domestic market performance last week was influenced by global cues, including concerns over the ongoing US debt ceiling talks, German slowdown and hawkish comments from US Fed officials.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI,