New Delhi: Macroeconomic data, global geopolitical developments and rising concerns over AI-related disruptions are likely to dictate sentiment in the stock market next week, even as investors may remain cautious amid ongoing volatility, according to analysts.
Besides, the trading activity of foreign investors and domestic currency movements will also guide market movement during the week.
“In the near term, with tariff‑related concerns easing and the domestic earnings season drawing to a close on a mixed trend, market focus will hinge largely on global cues, including the US labour data and shifting expectations surrounding the US Fed’s policy path.
“However, the overall sentiment is likely to remain cautious as investors monitor global AI-driven disruptions and geopolitical risks, while improved valuations and constructive GDP forecasts may help sustain FII inflows,” Vinod Nair, Head of Research, Geojit Investments Ltd, said.
With IT and metals facing persistent structural and external headwinds, market leadership may rotate toward domestically oriented sectors such as banking, autos, and select consumption-driven segments.
However, broader indices are expected to remain range-bound until clearer macroeconomic and policy signals emerge, Nair said.
On a weekly basis, the 30-share BSE Sensex slumped 953.64 points, or 1.14 per cent, while the NSE Nifty dropped 222.6 points, or 0.86 per cent.
Both indices closed the week on a negative note as a global selloff in technology stocks and concerns over artificial intelligence-led disruptions weighed on the sentiment.
“Markets will monitor WPI inflation and balance of trade data for signals on price trends and external sector dynamics. High-frequency indicators due include HSBC flash PMI readings for manufacturing, services, and composite, along with bank loan growth and foreign exchange reserves data.
In the previous week, the stock market was largely supported by favourable India-US trade deal development and renewed FII inflows that lifted overall risk appetite.