Global trends, trading activity of foreign investors and news flow on tariffs are expected to influence movement in the equity market in a holiday-shortened week ahead, analysts said.
Equity markets would remain closed on Wednesday for ‘Mahashivratri’.
“This week, we expect Nifty to remain in consolidation mode; tracking the mixed global market cues, US trade policy announcements and geopolitical developments with regards to the Russia-Ukraine war,” Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.
- Also read: Trump unveils new trade policy with reciprocal tariffs to ensure fairness
Movement of global oil benchmark Brent crude and the rupee-dollar trend would also dictate market trends this week.
“Investors are keeping a close eye on the upcoming pivotal indicators, such as the US Core PCE Price Index and India’s GDP growth rate. The market’s mood remains cautious, with pessimistic sentiments likely to linger until there is a marked improvement in corporate earnings and a conducive environment with easy global liquidity and stabilised currency,” Vinod Nair, Head of Research, Geojit Financial Services, said.
Last week, the BSE benchmark declined 628.15 points, or 0.82 per cent, and the NSE Nifty went lower by 133.35 points, or 0.58 per cent.
- Also read:Auto, pharma stocks drag down indices as tariff concerns persist
“Reciprocal tariff concerns continued to dominate the global and the Indian equity markets,” Shrikant Chouhan, Head-Equity Research, Kotak Securities, said.
Chouhan added that news flow on tariffs is expected to influence equity markets in the near term.
“Market sentiment was significantly impacted by US President Donald Trump’s announcement of reciprocal tariffs on key trading partners. Additionally, corporate earnings remained under pressure,” Puneet Singhania, Director, Master Trust Group, said.