Macro data, global trends to dictate stock markets this week: Analysts

Domestic equities will be guided by macroeconomic data, auto sales numbers and global trends this week, analysts said.

Equity benchmark indices scaled new closing highs on Friday, with the 30-share BSE index closing above the 56,000-mark for the first time. The market capitalisation of BSE-listed companies jumped to an all-time high of Rs 2,43,73,800.36 crore on Friday.

"Markets could be impacted by an eventful economic calendar which begins with quarterly GDP growth rate numbers, followed by auto sales numbers and manufacturing PMI data," according to a note by Samco Securities Research.

Markets would also continue to watch COVID-19 trends and pace of vaccination.

During the last week, the BSE benchmark gained 795.40 points or 1.43 per cent.

"Domestically, the result season is over with better-than-expected delivery and now with vaccination drive going on in full swing, economic recovery is expected to gain pace. However, sharp outperformance in the past 18 months had led to concerns on valuation front.

"From the long term perspective, the overall trend of the market remains positive led by opening up of the economy, improving economic data points and pickup in vaccinations," Siddhartha Khemka, Head - Retail Research, Broking & Distribution, Motilal Oswal Financial Services Ltd said.

Movement in equities will also depend on trends in the rupee and Brent crude. Markets may also react to the outcome of the Jackson Hole Economic Symposium.

Wall Street rallied to record highs on Friday after the US Federal Reserve chief Jerome Powell said that the central bank was still far from pulling interest rates off the record low.

Powell, however, mentioned that the US economy has met one big milestone the central bank had set to slow the USD 120 billion in bond purchases it's making each month.

Investors, who were keenly awaiting the US Fed chief's speech at Jackson Hole Symposium for further cues, termed his comments as 'dovish' and expressed hope that the Fed will keep supporting the market with low interest rates.