Investors will be keeping a lookout on global trends and macroeconomic announcements in the coming week, analysts noted. The tariff developments from US President Donald Trump’s administration are expected to influence sentiment in the markets in the week, experts said.
The coming week is expected to be a shortened trading week on the account of the Holi festival. Markets will remain closed for the public on March 14 as the nation celebrates the festival of colours. Further, investors will also track the activity of foreign players, crude oil prices, fluctuations in rupee and dollar, and developments in geopolitical conflicts, experts said.
Macro Data, Tariff Negotiations Under Observation
Elaborating on the outlook, Ajit Mishra, SVP, Research, Religare Broking Ltd, noted, “Key factors to watch include fresh updates on tariff negotiations, geopolitical tensions, and their impact on the movement of the US dollar and crude oil prices. Foreign Institutional Investors (FIIs) have slowed their selling in cash markets, but any shift in their stance will remain a crucial indicator for market direction,” reported PTI.
Domestically, macroeconomic data such as the Index of Industrial Production (IIP) and Consumer Price Index (CPI) inflation data will be revealed in the week. The CPI data for India and US is expected to be released on Wednesday.
Markets Last Week
Last week, the equity benchmark indices climbed high. The BSE Sensex rallied 1,134.48 points or 1.55 per cent, while the NSE Nifty50 jumped 427.8 points or 1.93 per cent.
Mishra noted that global sentiment also improved after reports emerged stating that US tariffs might be delayed as countries try to engage in further negotiations. This helped stabilise the markets to some extent.
Vinod Nair, Head of Research, Geojit Financial Services, added, “The domestic market finally closed in the green after weeks of relentless selling, primarily due to a rebound in Q3FY25 GDP and a recovery in consumption. The metal, capital goods, and energy sectors outperformed on account of optimism over China’s stimulus and lower crude oil prices. A fall in the dollar index also sweetened investor sentiment towards emerging markets, while the US equity markets have declined due to uncertainty over Trump’s economic policies. On the tariffs front, the long-awaited tariffs were enacted but later backtracked by delaying their implementation, creating uncertainty among investors.”
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