Market Sentiment Hinges on Key Data Releases This Week

The Indian stock market started July on a positive note, but investors will be closely watching several key data releases this week to gauge sentiment.

On Monday, July 27, domestic and foreign institutional investors eyed industrial production (IIP) data, which is expected to be released on Wednesday for the month of June. Higher-than-expected growth would be a positive sign for equities.

The Manufacturing Production data will also be known tomorrow, providing insight into the manufacturing sector's performance. A lower fiscal deficit in the government budget balance for June, scheduled for release on Friday, is generally supportive for the rupee and bond markets.

The week's biggest event is the Federal Reserve Interest Rate Decision on Wednesday. Markets expect rates to remain at 3.75%, but guidance will drive global sentiment. The Fed Chair Press Conference on Thursday will be closely watched for comments on inflation and future rate cuts.