MUMBAI: Foreign fund flows, investor response to a host of large IPOs and emerging geopolitical equations after the fall of the dictatorial Syrian regime are expected to dictate the market’s direction in the new week.
Inflation numbers for Nov – both retail and wholesale, and which are due this week – would also have some effect on investor sentiment, market players said. In addition, if the rupee further weakens against the dollar, that would have an impact on investor sentiment too, they said.
Together, these factors would also decide if leading indices would continue to extend their winning streak to the fourth consecutive week.
“With no major events on the horizon, market attention is expected to turn towards macroeconomic indicators like IIP and CPI numbers,” Ajit Mishra of Religare Broking said. During RBI’s recent policy meeting, the governor highlighted the critical need to manage inflation, “suggesting that a potential easing of inflation, coupled with continued sluggishness in GDP growth, could create room for a rate cut in the next policy meeting,” Mishra said.