New Delhi: Macroeconomic data announcements, global trends, and trading activity of foreign investors would be major driving factors for market movement this week, analysts said.
Unabated capital infusion by domestic institutional investors has supported the positive trend in the stock market last week, traders said.
“This week is expected to be data-heavy, both domestically and globally, as markets enter the early phase of the earnings season. In India, investors will track the final readings of the HSBC Services PMI (Purchasing Managers’ Index) and Composite PMI. Globally, key US macro data and releases from China will be closely watched for signals on growth, demand, and inflation trends,” Ajit Mishra — SVP, Research, Religare Broking Ltd — said.
At the same time, market attention is gradually shifting toward the Q3 earnings season. IT majors TCS and HCL Technologies will kick off earnings announcements on January 12. Analysts believe investors may take selective positions in frontline stocks ahead of results from key index heavyweights.
Strong buying by domestic institutional investors (DIIs) has continued to support market sentiment. Their steady capital inflows helped Indian equities end last week on a positive note.
Globally, investors will keep a close eye on US macroeconomic data, especially non-farm payrolls and unemployment figures. These numbers could influence expectations around US Federal Reserve interest rate decisions, which often impact global liquidity and risk appetite.
Economic data from China will also be watched for signals on growth, demand and inflation trends. Any major surprise on the global front could lead to short-term volatility in Indian markets.
Last week, the BSE Sensex rose over 720 points, while the Nifty climbed more than 286 points and touched a fresh all-time high of 26,340. Foreign Institutional Investors (FIIs) also turned net buyers on Friday, purchasing equities worth nearly Rs 290 crore.
Experts say factors like the rupee’s movement against the US dollar and changes in crude oil prices will also influence market direction. Despite global uncertainties, analysts remain cautiously optimistic, citing strong domestic fundamentals, earnings visibility and steady consumption trends as key positives for 2026.
