RBI interest rate decision, macro data, global events to steer markets

Macroeconomic data announcement, auto sales numbers, RBI interest rate decision and global events related to the US and China over Hong Kong would drive market sentiment this week, analysts said.

PMI data for manufacturing and services sectors are scheduled to come this week which may also impact trading at the bourses.

"For the week ahead, November auto sales and RBI policy meet this week will influence the market. Main indices performance will be tepid," Vinod Nair, Head of Research, Geojit Financial Services said.

Equity markets may on Monday also react to India's economic growth slipping further to a low of 4.5 per cent in July-September. The official data was released post market hours on Friday.

"Markets will react to the GDP numbers in early trade on Monday. The recent feud between the US and China over Hong Kong could induce volatility in the global markets," Ajit Mishra, VP - Research, Religare Broking said.

READ | MASSIVE: RBI Supersedes DHFL's Board, Appoints Administrator For Insolvency Proceedings

Amar Ambani, Senior President and Head of Research Institutional Equities, YES Securities said, the GDP growth figure was as per their estimate and while there may be a mild negative reaction on Monday, it will not change the medium term trajectory for equities.

TradingBells Co-Founder and CEO Amit Gupta said other than the RBI policy, auto sales numbers and global cues will be important for the market this week.

The Sensex advanced 434.40 points or 1.07 per cent last week.

Rahul Gupta, Head of Research-Currency, Emkay Global Financial Services said," India's manufacturing and industrial sectors have been witnessing a slowdown along with fall in consumer demand, private investment and global slowdown. Thus, to revive growth we expect the RBI to again cut repo rate by 25 basis points in December 5 policy,".

READ | RBI Slaps Rs 2.50 Cr Fine On BoB For Violating Directions On Bihar NGO

READ | PMC Bank Scam: RBI Extends Withdrawals To Rs 50,000; Protest Continues