Inflation data, global trends to drive share market next week, say analysts

The equity market movement in the coming week is going to be led by global trends, foreign fund trading as well as inflation data, a PTI report cited analysts as saying. Tuesday will see the stock market remaining closed on account of Independence Day, making the week shorter. 

Santosh Meena, Head of Research, Swastika Investmart Ltd, said that in the coming days, Rupee, FII activities and macroeconomic indicators are going to be important factors affecting the market trends over the next few days. Meena added that on a global scale, the inflation data of Japan, IIP numbers in China as well as retail sales statistics of the US are going to be in focus. 

India's wholesale and retail inflation data for the month of July are set to be announced on Monday. 

"India's WPI and CPI inflation data, exports and imports numbers will be in focus in the coming days. We expect the Indian market will continue to remain rangebound and will take further cues from US jobs data and minutes of the Federal Open Market Committee (FOMC) meeting," Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said.

The coming week is also set to see the announcement of the earnings of Hindustan Copper and ITC. 

Trading in the stock market is also going to be impacted by the movement of Rupee against the US Dollar, as well as by the 
global oil benchmark Brent crude.

Official data released on Friday revealed that June saw industrial production growth in India fall to 3.7 per cent in June, marking a three-month low. This decline can primarily be attributed to poor showing by the manufacturing sector. 

The BSE benchmark Sensex declined 398.6 points or 0.60 per cent last week, while the NSE Nifty saw a decline of 88.7 points or 0.45 per cent. The indices extended their losses for the third consecutive week as they were dragged down by consumer stocks as well as financials.

"The Indian market experienced bearishness during the last week that focused on economic data as inflation concerns dented domestic sentiments," said Vinod Nair, Head of Research at Geojit Financial Services. 

(With PTI inputs.)