News

Published: Feb 20, 2023
Updated: Feb 20, 2023

Equity Investors Look to Global Trends and Foreign Fund Movement This Week as Third Quarter Earnings Calendar Ends

Equity investors will keep a close eye on global trends and foreign fund movement this week, as the third quarter earnings calendar draws to a close and no major domestic trigger is in sight, according to analysts. Markets are expected to face volatile trends amid derivatives expiry during the week, which may cause fluctuations in the stock market. Analysts have highlighted that FPIs have shown some interest in purchasing over the past few days and block purchases last week, making their flow a crucial factor.

Foreign Fund Movement and Brent Crude Oil Movement in Focus

Foreign Portfolio Investors (FPIs) turned net buyers last week with an investment of over Rs 7,600 crore, against net outflows of Rs 3,920 crore in the preceding week. The movement of Brent crude oil and the trend in the rupee are also expected to be in focus this week. The performance of global markets, particularly the US, will be monitored for cues as major events have passed, said Ajit Mishra, VP Technical Research, Religare Broking Ltd.

BSE Benchmark Climbs

The BSE benchmark index climbed 319.87 points or 0.52 per cent last week, dominated by the release of key macroeconomic numbers and persistent FII buying. However, a stronger job market in the US market and higher-than-expected inflation dragged the markets lower towards the end of the week, raising concerns about tighter monetary policy.

Global Cues to Dictate Market Trend

With the lack of major triggers in the domestic market, the performance of global markets will attract attention to dictate the market's trend going forward. Vinod Nair, Head of Research at Geojit Financial Services, said that the unfavourable combination of higher-than-expected inflation and a stronger job market in the US market dragged markets lower towards the end of the week, raising concerns about tighter monetary policy.

Volatility expected to rule markets with evolving global trends and foreign fund movement's

Investors are keeping a watchful eye on global trends and foreign fund movement this week, with no major domestic trigger in sight. Markets are expected to be volatile amid derivatives expiry during the week. The movement of Brent crude oil and the trend in the rupee will also be in focus, while global cues are expected to dictate the market's trend going forward.