Global trends, Q2 earnings, macro data to drive markets this week: Analysts

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Global trends, the last batch of Q2 earnings and domestic macroeconomic data will dictate terms in the equity market, which had an extended weekend last week, analysts said.

"FIIs' behaviour along with inflation numbers from US and China will remain key factors for this week. After an extended weekend, Indian markets are likely to start a fresh week with a positive note on the global backdrop.

"However, there is a risk of selling pressure at higher levels as we are underperforming the global peers where the near-term texture has changed to 'sell on rise' from 'buy on dip'," Santosh Meena, head (research) at Swastika Investmart Ltd, said.

He added that markets will remain busy dealing with global macro numbers where US inflation numbers that are scheduled on November 10 will be the most critical one, whereas China will also announce its inflation numbers on the same day.

On the domestic front, IIP data will be released on November 12.

Stock-specific movement will be seen as the market is heading for the last batch of Q2 earnings where Muthoot Finance, Britannia and M&M are among the key numbers, he added.

"This week, participants will be closely eyeing macroeconomic data i.e. IIP and CPI inflation on November 12. Indications are in favour of further consolidation but the range could be broader this week," Ajit Mishra, vice-president (research) of Religare Broking, said.

On the earnings front, some of the prominent companies like BHEL, IGL, M&M, ONGC and Tata Steel will announce their results along with several others, Mishra added.

Last week, the BSE benchmark gained 760.69 points or 1.28 per cent.

A special one-hour Muhurat trading session was held on Diwali (November 4) to mark the beginning of the traditional Hindu calendar year, called 'Vikram Samvat'.

Markets were closed on Friday on the occasion of 'Diwali Balipratipada'.

"The United States and China's inflation figures will influence global markets. As long as inflation remains a concern, even D-Street investors will closely monitor domestic inflation rate," said Yesha Shah, head (equity research) at Samco Securities.

A slew of significant economic data releases and the ongoing earnings season, the volatility experienced last week is expected to persist this week also, Shah added.