Global factors, crude oil, macro data to drive stocks this week: Analysts

New Delhi: Stock markets would be driven by domestic macroeconomic data, global trends, crude oil movement and FII activity this week and may remain volatile ahead of the start of the quarterly earnings season, analysts said.

Tepid global cues and nervousness ahead of the earnings season have impacted sentiment, they said.

"There is selling exhaustion at lower levels as market is bouncing back from every intra-day dip amid headwinds like fall in global markets, rupee weakness, and windfall tax on domestic refineries.

"FIIs are still selling but the momentum has come down significantly, therefore, bulls will look for a relief rally if global markets remain stable," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Crude oil prices, dollar index and rupee movement will be other dominating factors, Meena added.

"This week marks the beginning of the earnings season and IT major TCS would announce its numbers on July 8. Participants will be closely eyeing its results for any change in the guidance amid fears of a global slowdown.

"Besides, performance of global indices, crude movement and updates on the ongoing tussle between Russia and Ukraine will be in focus," Ajit Mishra, VP - Research, Religare Broking Ltd, said.

From macroeconomic data announcement, Purchasing Managers' Index (PMI) services sector data on Tuesday would also influence trading.

Last week, the Sensex went up by 179.95 points or 0.34 per cent, while the

Nifty gained 52.80 points or 0.33

per cent.