Indian equity markets are likely to stay cautious and rangebound in the coming week, with investors tracking a mix of domestic data, global cues and derivatives-related volatility.
Here are the 10 key factors likely to drive markets:
- Auto sales data (December)
- Monthly sales numbers will offer insights into rural demand, festive traction and inventory trends
- Auto stocks could see stock-specific action
- FOMC meeting minutes
- Investors will look for clarity on the US FedтАЩs rate-cut trajectory
- Any hawkish tone may impact global risk sentiment and FIIs
- Manufacturing PMI (India & global)
- PMI data will be watched for signs of growth momentum and input cost pressures
- F&O monthly expiry
- Expiry-led volatility likely in the initial part of the week
- Sharp moves possible in index heavyweights
- Global market cues
- Direction from Wall Street and Asian markets amid thinning year-end liquidity
- Crude oil prices
- Movement in Brent crude will influence inflation outlook and oil marketing stocks
- Rupee movement
- Currency trends remain key for IT, pharma and FII flows
- FII and DII activity
- Continued monitoring of foreign fund flows, especially after recent selling bouts
- India VIX
- Elevated volatility levels could cap upside and encourage stock-specific trading
- Corporate updates and earnings pre-buzz
- Select stocks may react to pre-quarterly updates and management commentary
Market view
Experts expect limited upside, with investors adopting a wait-and-watch approach ahead of key global signals and domestic data, while derivatives expiry may keep markets volatile in the near term.
