In the upcoming holiday-shortened week, analysts anticipate that stock markets will be primarily influenced by global trends and macroeconomic data releases, potentially introducing volatility due to monthly derivatives expiry. Markets will remain closed on Monday to mark Gurunanak Jayanti.

Investors are expected to closely monitor global cues, with a specific focus on movements in crude oil prices, US bond yields, and the dollar index. Santosh Meena, Head of Research at Swastika Investmart Ltd, notes that although global cues remain relatively muted, these factors will likely impact market sentiment.

Additionally, the trading activity of foreign investors and fluctuations in the rupee against the dollar will be key areas of interest for investors seeking insights into market dynamics.

Domestically, the release of GDP data for the July-September quarter on Thursday and the announcement of the Purchasing Managers' Index (PMI) data for the manufacturing sector on Friday will be crucial for market participants. Auto stocks are expected to be in the spotlight as companies begin unveiling monthly sales figures for November from December 1 onward.

Arvinder Singh Nanda, Senior Vice President at Master Capital Services Ltd, emphasizes that markets will closely follow both global and domestic macroeconomic data. The release of India's GDP for the third quarter and infrastructure output data for October on November 30 will provide further insights. Nanda adds that global factors such as US GDP data, crude oil inventories, US PMI data, and Eurozone core CPI data will contribute to market sentiment.

In the previous week, the BSE benchmark rose by 0.26 per cent, and the Nifty increased by 0.31 per cent, with markets experiencing relative stability. Analysts note that the decline in US inflation has bolstered market confidence, leading to a slowdown in Foreign Portfolio Investors' selling activities. Notably, FPIs were buyers on four days in the current month, with substantial buying recorded on Friday.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, points out that the decline in US inflation has alleviated concerns about further rate hikes by the Federal Reserve. As a result, US bond yields have fallen significantly, prompting FPIs to curtail their selling activities, with notable buying activity observed on several occasions this month.

(With Reuters inputs)