Global trend, inflation data will decide the direction of stock markets

Local stock markets will remain volatile this week amid geopolitical concerns and the possibility of a hike in interest rates in the US. Expressing this opinion, analysts have said that trading in the market will remain in a range for now.

Along with this, investors will also keep an eye on the global trend, inflation data and quarterly results of companies. Now is the final round of quarterly results. Volatility of rupee, trend of foreign institutional investors and Brent crude oil prices will also give direction to the market.

Santosh Meena, Head of Research, Swastika Investmart said, “Markets across the world are trying to adjust amidst the possibility of a steep hike in interest rates in the US. But the concern remains due to geopolitical tensions.”

On the domestic front, inflation data is to come this week as well as the final round of quarterly results, he said. This will affect the direction of the market. There may be activity in certain stocks.

Meena said that investors will also keep an eye on developments related to the assembly elections in Uttar Pradesh, Uttarakhand, Goa, Punjab and Manipur.

He said the approach of FIIs will also be important for the Indian markets, as they are currently making huge withdrawals.

However, on Friday, FIIs infused a net Rs 108.53 crore into Indian stocks. During this month, FIIs have pulled out a net Rs 14,930 crore from the Indian capital market.

Last week, the 30-share Sensex of BSE was down by 491.90 points or 0.83 per cent.

Adani Enterprises, Coal India, Eicher Motors, Ambuja Cements, Nestle India, SpiceJet and Jet Airways are expected to report quarterly results during the week.

Yesha Shah, Head of Equity Research, Samco Securities, said, “Following the reaction to the US inflation data, investors will now try to understand the Federal Reserve’s action. The details of the Federal Reserve meeting are about to be released.

Apart from this, investors will also keep an eye on China’s inflation data, Shah said. Dalal-Street investors will also keep an eye on the domestic inflation data. Overall, due to these developments, there is a possibility of volatility in the market.

Ajit Mishra, Vice President Research, Religare Broking said, “With key developments left behind, investors will now be looking at the quarterly results of global markets and companies. On the macro front, the market will react on the Industrial Production (IIP) data on Monday. Apart from this, wholesale and retail inflation data is also to come on February 14.

Vinod Nair, Head of Research, Geojit Financial Services, said that the market direction this week will be determined by the global trend and macroeconomic data on the domestic front.