Stock markets are set to be influenced by global trends, macroeconomic data releases, and developments in US tariffs during a holiday-shortened week, analysts said. Investors will also keep a close watch on foreign investor activity, geopolitical tensions, and their impact on the US dollar and crude oil prices.
Ajit Mishra, SVP of Research at Religare Broking Ltd, noted, “With no major domestic events, market participants will focus on global updates, including tariff negotiations and macroeconomic indicators. Foreign Institutional Investors (FIIs) have slowed their selling in cash markets, but any shift in their stance will be a crucial market indicator.”
Key macroeconomic data releases
On the macroeconomic front, the release of the Index of Industrial Production (IIP) and Consumer Price Index (CPI) inflation data will be closely watched. The CPI data for both the US and India is set for release on March 12. Additionally, equity markets will remain closed on Friday for Holi.
Market performance
Last week, the BSE Sensex rose by 1,134.48 points (1.55%), while the NSE Nifty gained 427.8 points (1.93%). Market sentiment improved following reports of a delay in US tariffs and the potential for further negotiations, which stabilised financial markets. A weaker dollar and declining crude oil prices further bolstered investor confidence.
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Vinod Nair, Head of Research at Geojit Financial Services, highlighted that domestic markets closed in the green after weeks of selling, driven by a Q3FY25 GDP rebound and improved consumption. Sectors such as metals, capital goods, and energy outperformed, benefiting from optimism over China’s stimulus and lower crude oil prices.
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Nair added that investors will monitor US payroll data and inflation figures for cues on Federal Reserve interest rate decisions. While broader market valuations may limit short-term recovery, large-cap stocks remain attractive amid easing tariff uncertainty and improving earnings outlooks.
(With PTI inputs)
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