‘India-Pak situation, inflation data, Q4 results to drive mkts this week’

New Delhi: The domestic equity markets this week would monitor the geopolitical developments after India and Pakistan reached an understanding to stop military actions, analysts said.

Moreover, macroeconomic data announcements, Q4 earnings, trading activity of foreign investors and global market trends are also likely to influence sentiments, traders said.

India and Pakistan on Saturday reached an understanding to stop all firings and military actions on land, air and sea, with immediate effect after four days of intense cross-border drone and missile strikes.

“This de-escalation removes a key overhang on investor sentiment and is likely to be seen as a major positive development by financial markets. Historically, markets have shown resilience and a tendency to recover following such geopolitical de-escalations,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

All eyes would be on FIIs who turned negative on Friday trading session after being continuous net buyers in the last 2 weeks, he added. Foreign investors continue to show confidence in the country’s equity market, infusing Rs 14,167 crore so far this month.