Global trends, inflation data to drive market sentiment this week: Analysts

Equity investors would track global market trends, inflation data and trading activity of foreign investors for further cues this week, analysts said.

Moreover, progress of monsoon and developments related to trade talks would also be monitored by investors, experts noted.

"Going forward, market participants will focus on key macroeconomic data for further cues. High-frequency indicators such as CPI inflation will be closely tracked to gauge demand trends and the central bank's next steps. Additionally, the progress of monsoon and sowing patterns will be monitored due to their implications for rural consumption," Ajit Mishra -- SVP, Research, Religare Broking Ltd -- said.

On the global front, developments in trade negotiations and movements in US bond yields will continue to influence investor sentiment, he added.

Benchmark indices Sensex and Nifty surged on Friday, driven by a rally in rate-sensitive sectors following the Reserve Bank's jumbo rate cut of 50 basis points. 

The 30-share BSE Sensex ended the day higher by 746.95 points, or 0.92 per cent, to settle at 82,188.99.

The 50-share NSE Nifty reclaimed the 25,000-level and climbed 252.15 points, or 1.02 per cent, to settle at 25,003.05.

"We expect Indian markets to witness a gradual up-move, supported by positive sentiment following higher-than-anticipated rate cut by the RBI and optimism surrounding a potential US-India trade agreement with officials from both sides meeting in New Delhi to finalise the first phase of the proposed deal," Siddhartha Khemka, Head, Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.

"Meanwhile, global headwinds, including unexpected shifts in US tariffs and ongoing geopolitical tensions, may induce volatility," he said.

Last week, the BSE benchmark surged 737.98 points, or 0.90 per cent, and the Nifty jumped 252.35 points, or 1 per cent.

Vinod Nair, Head of Research, Geojit Investments Ltd, said, the aggressive RBI rate cut, backed by cooling inflation and a steady GDP outlook, is likely to support investor confidence amidst the ongoing global uncertainties.

Foreign Institutional Investors (FIIs) bought equities worth Rs 1,009.71 crore on Friday, according to exchange data.