MOHAMMAD ZIYAUDDIN
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New Delhi: Investors will closely monitor global trends and macroeconomic announcements in the coming week, with particular attention on US tariff developments, foreign institutional investor (FII) activity, crude oil prices, and geopolitical tensions, analysts noted.
The trading week will be shortened due to the Holi festival on March 14, when markets will remain closed.
Key Market Triggers for the Week
US Tariff Negotiations & Global Market Trends
- The Biden administration’s tariff decisions will be a major factor influencing global sentiment.
- Reports suggest possible delays in tariff implementation, leading to cautious optimism in the markets.
Macroeconomic Data Releases
- Investors will track key macroeconomic data:
- Index of Industrial Production (IIP)
- Consumer Price Index (CPI) inflation data for both India and the US (to be released on March 13).
Foreign Institutional Investors (FIIs) Activity
- FIIs have slowed their selling in cash markets, but any change in their stance will be critical for market direction.
Crude Oil & Currency Fluctuations
- Movement in crude oil prices and the rupee-dollar exchange rate will also impact sentiment.
Markets Last Week: Strong Gains Amid Improved Sentiment
The equity benchmark indices surged last week, fueled by positive global cues and improved domestic consumption:
BSE Sensex: +1,134.48 points (1.55% gain)
NSE Nifty50: +427.8 points (1.93% gain)
Expert Insights
Ajit Mishra, SVP, Research at Religare Broking Ltd, stated:
"Key factors to watch include fresh updates on tariff negotiations, geopolitical tensions, and their impact on the US dollar and crude oil prices."
Vinod Nair, Head of Research at Geojit Financial Services, highlighted:
"The domestic market finally closed in the green after weeks of selling, thanks to strong Q3FY25 GDP numbers and a recovery in consumption."
He also noted:
"The metal, capital goods, and energy sectors outperformed due to optimism over China's stimulus and lower crude oil prices. Meanwhile, the US market declined due to uncertainty over Trump’s economic policies."
What to Watch for This Week?
US tariff policy updates & global market movements
India & US CPI inflation data release (March 13)
FII buying/selling trends
Crude oil & rupee-dollar fluctuations
Post-Holi market momentum
The markets may see volatility amid global uncertainties, but domestic factors like inflation data and FII activity will play a key role.
