Economic Indicators Set to Drive Equity Markets in the New Year

This week, the equity market will be influenced by macroeconomic data announcements, foreign investor trading activity, and global trends, coinciding with the start of the new year and month. Key factors include rupee movement, USD influence, FII selling, and auto sales data, amid upcoming Q3 earnings forecasts.

This week, equity markets are poised to be influenced by macroeconomic data announcements, trading activities of foreign investors, and global trends. Analysts note that these factors will guide market movements as they coincide with the start of the new calendar year and month.

Investors will keep a keen eye on the rupee, which recently saw its sharpest decline in nearly two years, hitting a lifetime intra-day low. Foreign Institutional Investors' persistent selling pressure has been weighing on Indian markets, and their stance in the new year will be crucial in shaping near-term trends. Monthly auto sales data and forthcoming Q3 corporate earnings updates will also be pivotal.

On the global stage, key economic indicators, including manufacturing PMI data from China and the US, along with US jobless claims, will play significant roles. Meanwhile, the dollar index and US bond yields remain central to the global market direction. The market outlook remains cautious, with analysts anticipating range-bound movements due to thin trading volumes by FIIs over the holiday season.

(With inputs from agencies.)