Indian markets looked poised for a volatile start to the trading week on Monday. The BSE Sensex rang the opening bell above 85,700, falling close to 50 points, while the NSE Nifty50 opened at 26,324, slipping merely 4 points, around 9:15 AM.
In the pre-open session, the Sensex slipped over 50 points and breached 85,700, and the Nifty rose 22 points and tested 26,350, as of 9:06 AM.
A busy macroeconomic calendar, global market cues and the trading pattern of foreign investors are expected to drive equity market movement in the week, analysts said, as investors step into the new year amid rising optimism around domestic fundamentals.
Strong and uninterrupted buying by domestic institutional investors (DIIs) helped Indian equities extend gains last week, providing resilience despite mixed global signals, traders noted.
The week is likely to be data-heavy both at home and overseas, coinciding with the early phase of the quarterly earnings season.
Key Domestic Data In Focus: PMI Readings To Guide Sentiment
On the domestic front, market participants will track the final readings of the HSBC Services Purchasing Managers’ Index (PMI) and Composite PMI for fresh cues on business activity and employment trends. These indicators are expected to offer insights into the strength of India’s services-led growth momentum.
“Globally, key US macroeconomic data and economic releases from China will be closely watched for signals on growth, demand and inflation trends,” said Ajit Mishra, Senior Vice-President (Research) at Religare Broking Ltd.
