Markets To Track Inflation Data, Global Trends, FIIs Trading Activity This Week: Analysts

Investors would track a host of macroeconomic data announcements scheduled this week, including inflation numbers, and also monitor global market trends, and trading activity of foreign institutional investors, analysts said.

The ongoing quarterly earnings announcements and the rupee-dollar trend would also influence the markets.

"This week is set to be dynamic for global and Indian markets, driven by key macroeconomic data releases and corporate earnings. Market sentiment will be shaped by inflation figures, industrial production data, and major earnings announcements," Master Trust Group Director Puneet Singhania said.

On Wednesday, the US inflation data for January will be in focus. Later in the day, Fed Chair Jerome Powell's testimony will be closely watched for insights into interest rate expectations, Singhania said.

"For India, inflation and industrial production data will be released on February 12," he said.

On Thursday, the UK's GDP growth data will be released and on Friday the US retail sales data for January will provide insights into consumer spending, Singhania said.

Corporate earnings will also drive market sentiment. Major companies reporting earnings include Eicher Motors Ltd., Grasim Industries Ltd., Vodafone Idea Ltd., Steel Authority of India Ltd., he added.

The BJP on Saturday trounced the Aam Aadmi Party in Delhi and returned to power in the city after more than 26 years, extending its saffron imprint and dealing a body blow to the Arvind Kejriwal-led party, whose top leadership crumbled or barely made it.

"The sentiments in the Indian market are slowly improving in response to an excellent Budget and the rate cut by the MPC. The victory of the BJP in the Delhi elections is a major achievement for the ruling dispensation. This is likely to positively impact the market in the short run."

"However, the medium to long-term trend in the market will depend on the recovery in GDP growth and earnings recovery," V K Vijayakumar, chief investment strategist, Geojit Financial Services, said.

Last week, the BSE benchmark climbed 354.23 points, or 0.45%, and the Nifty went up by 77.8 points, or 0.33%.

Ajit Mishra, SVP, research, Religare Broking Ltd, said, "Looking ahead, investor focus will shift to earnings and upcoming macroeconomic data, including IIP, Consumer Price Index inflation, and Wholesale Price Index inflation, scheduled during the week. Additionally, movements in the rupee, foreign fund flows, and global market trends, particularly from the US, will be closely monitored."