An employee holds a stack of electronic payment receipts and Indian Rupee banknotes (Photographer: Dhiraj Singh/Bloomberg)

Macro Data, Rupee, Oil To Guide Markets This Week, Say Experts

The announcement of macroeconomic data, global cues, movement of the rupee and crude oil prices will dictate the stock market trend in the first week of the new year, experts said.

Purchasing Managers' Index data for the manufacturing and services sectors are due this week, which will influence trading sentiment. Besides, sales data from auto companies can trigger stock-specific action, they said.

"Market is expected to continue being volatile with selling occurring at higher levels. International factors will likewise influence domestic markets,” the experts added.

"Macros are nonetheless favourable but political uncertainty, strained global geopolitics and brewing trade wars will act as a catalyst for the negative sentiment prevailing in the equity markets," said Jimeet Modi, founder and chief executive officer, SAMCO Securities and StockNote.

"Consolidation in oil prices and a strong rupee will provide stability in the macros which will provide confidence for investors," said Vinod Nair, head of research at Geojit Financial Services.

Investors will closely watch the third quarter earnings, while global cues will dictate the direction of the market, he said. The earnings season, which would kick-start from the second week of January, will keep markets busy.

During the past week, the Sensex gained 334.65 points to finish at 36,076.72.