Markets

Published: Mar 06, 2023
Updated: Mar 06, 2023

Equity Markets to be Driven by Global Trends and Foreign Fund Trading Activity

As the holiday-shortened week begins, analysts predict that the equity markets will be primarily driven by global trends and foreign fund trading activity. While the BSE and National Stock Exchange will remain closed on March 7 for Holi, the ANMI has requested the government, exchanges, and Sebi to shift the holiday to March 8.

Global Trends and Foreign Fund Trading Activity

The fear of the US FED continuing to raise interest rates to control inflation and rising US bond yields and macroeconomic numbers may keep the market mood subdued in the near term. Therefore, investments by FIIs and DIIs will be monitored closely. The Bank of Japan's interest rates decision and the release of US nonfarm payrolls and unemployment rate data on March 10 will also have an impact on the equity markets.

Domestic Factors Affecting the Markets

Industrial production data for January will be released on March 10, and market investors will also keep track of the movement of the rupee against the US dollar and Brent crude oil. Participants will be eyeing the IIP data scheduled on March 10.

Market Performance

Last week, the BSE benchmark climbed 0.58 per cent, ending on a positive note amid high volatility. The BSE Sensex rallied 1.53 per cent to end at 59,808.97 on Friday.

Mixed global cues to drive markets throughout the week

As the equity markets begin the holiday-shortened week, the focus will be on global trends and foreign fund trading activity, alongside domestic factors affecting the markets. Market participants will be closely monitoring the data releases and movement of the rupee and Brent crude oil. The equity markets are expected to remain volatile, citing mixed indications.