PMI, US-India trade progress to steer stock markets this week, say analysts

New Delhi: Domestic PMI data, US Federal Reserve meeting minutes and the progress on India-US trade deal negotiations are likely to influence movement in the equity market in the week ahead, according to analysts. Moreover, the trading activity of foreign investors would also influence the equity market trends.

“Looking ahead, market direction will hinge on key macro triggers such as India’s PMI data, US jobless claims, FOMC minutes and progress on US-India trade negotiations.

“A prudent approach would be to focus on sectors with strong fundamentals, clear earnings visibility, and structural tailwinds — positioning portfolios for potential upgrades in H2FY26,” Vinod Nair, Head of Research, Geojit Investments Ltd, said.

Last week, the BSE Sensex surged 1,346.5 points, or 1.62 per cent, while the NSE Nifty advanced 417.75 points, or 1.64 per cent. He noted that “Indian equity markets ended the week on a strong note, with benchmark indices gaining on the resolution of the US government shutdown, supported by strong domestic fundamentals, stronger-than-expected Q2 earnings, and easing inflation”.

Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services, said, “Capital-market-linked stocks also remained active, supported by strong retail participation, elevated SIP flows, and enthusiasm for recent and upcoming IPOs.”

He further stated that “Indian equities are likely to maintain their steady up-move this week, supported by firm domestic macros, healthy earnings and a strong electoral mandate for the ruling NDA in Bihar, which reinforces political stability at the Centre”. PTI