Macro data announcements, trading moves likely to drive markets this week

A host of macroeconomic data announcements, global trends and trading activity of foreign investors would dictate investors' sentiment in the stock market this week, analysts said.

Besides, auto sales data will be closely tracked, experts noted.

With only a handful of trading sessions left this year, Indian equity markets are expected to remain largely range-bound, albeit with a constructive bias, according to a market analyst.

"This week marks the transition into calendar year 2026 and is likely to witness heightened volatility due to the December F&O expiry. Key domestic data points to track include industrial production data for November and the final HSBC manufacturing PMI (Purchasing Managers' Index) reading," Ajit Mishra SVP, Research, Religare Broking Ltd, said.

 

Globally, markets will closely monitor US macroeconomic cues, including the FOMC (Federal Open Market Committee) minutes and updates on the Federal Reserve's balance sheet, he said.

"These developments could influence near-term expectations around growth, liquidity, and global risk sentiment," Mishra added.

Indian equity markets ended the holiday-shortened last week on a cautious note, with mild profit-booking amid thin trading volumes and persistent foreign fund outflows.

In the holiday-shortened week, the BSE benchmark climbed 112.09 points or 0.13 per cent, and the Nifty went up by 75.9 points or 0.29 per cent.

"With only a handful of trading sessions left in 2025, Indian equity markets are expected to remain largely range-bound, albeit with a constructive bias. Investor sentiment this week is likely to be shaped by a busy economic data calendar, both domestically and overseas. On the home front, India's November industrial production (IIP) data will offer fresh insights into trends across mining, manufacturing, and electricity output," Ponmudi R, CEO - Enrich Money, an online trading and wealth tech firm, said.

November automobile sales data will be closely tracked for confirmation of sectoral momentum, he said.

Alongside IIP data, these releases will offer key insights into domestic consumption trends, particularly whether the post-GST rationalisation surge in auto demand is being sustained as India moves into 2026, Ponmudi added.

Globally, attention will turn to the minutes of the latest US Federal Reserve meeting, which are expected to provide greater clarity on the central bank's policy outlook, Ponmudi said.

Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said, key data releases to watch include US initial jobless claims, US and China manufacturing PMI figures, and India's monthly auto sales.