Indian stock markets are poised for a busy week, with key domestic and global factors set to shape investor sentiment. The October wholesale price index (WPI) inflation data and merchandise trade figures, both due on Monday, November 16, will be closely watched. Analysts emphasize that movements in crude oil prices, the dollar, US Treasury yields, and foreign institutional investor (FII) flows will play crucial roles in determining market direction.
Globally, investors will keep an eye on US retail sales, Nvidia's earnings, and the minutes of the Federal Reserve's latest policy meeting for insights into economic growth, interest rates, and technology stocks. Ajit Mishra, SVP - Research at Religare Broking, highlighted the importance of these indicators, along with US jobless claims and the Federal Open Market Committee (FOMC) meeting minutes, for gauging the US economy and potential monetary policy shifts.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, anticipates a positive bias for Indian equities, citing record FII inflows, strong domestic fundamentals, and encouraging earnings reports. Foreign investors have returned strongly to Indian equities, injecting Rs 84,290 crore in the first half of November after two months of net outflows. This influx comes amid a global sell-off in AI-related stocks, lower crude oil prices, and attractive valuations of large-cap shares.
Analysts warn that volatility in global technology stocks, particularly concerns over high AI valuations and semiconductor investments, could impact domestic sentiment. Ponmudi R, CEO of Enrich Money, noted that a deeper correction in technology stocks could dampen broader risk appetite and weigh on Indian IT companies. Additionally, Hariselvan Radhakrishnan, founder of HST Wealth, emphasized the importance of developments in the US bond market and crude oil prices for foreign investment flows.