Trends, FIIs trading activity to drive mkt trends this week: Analysts

Stock markets are expected to be driven by global trends and FPI trading activity this week after the conclusion of the earnings season, analysts said.

Unabated foreign fund outflows, lower-than-expected quarterly earnings and global trade war fears hit market sentiments last week, where the benchmark indices Sensex and Nifty extended their downward trend to the eighth day in a row on Friday.

"With the conclusion of the Q3 earnings season, now focus will be on global developments amid a turbulent market environment on account of Donald Trump's trade policies," Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.

Moreover, the rupee-dollar trend and movement of Brent crude, the global oil benchmark, will also be tracked by investors.

"With the earnings season behind us, market focus will shift to trends in FII (Foreign Institutional Investors) flows and currency movements for further cues. Additionally, speculation regarding US tariffs and their impact on global trade will remain a key factor to watch," Ajit Mishra SVP, Research, Religare Broking Ltd, said.

The US FOMC (Federal Open Market Committee) meeting minutes will also be in focus this week.

Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One Ltd, said, "In the absence of key domestic triggers, global developments are more likely to provide impetus in setting up our market tone."  In the last eight trading days, the BSE benchmark tanked 2,644.6 points or 3.36 per cent, and the NSE Nifty slumped 810 points or 3.41 per cent.

"Several factors contributed to the market downturn, with sentiment being particularly rattled by US President Donald Trump's announcement of reciprocal tariffs on US trading partners. Additionally, weak Q3 corporate earnings and sustained FII outflows further weighed on investor confidence," Puneet Singhania, Director at Master Trust Group, said.