The Indian stock market on Monday will be driven by favourable global cues and domestic economic data such as the HSBC India Manufacturing PMI and HSBC India Services PMI, as per the market analysts.
Analysts attribute fears that the US economy might slow as reflected in the recent unemployment data, coupled with hints that Indian stocks are possibly highly valued as the reason behind the latest FPI sell-off.
The stock market in the upcoming week will be looking at global happenings such as international market performance, anticipations of recession in the US, and domestic macroeconomic indicators such as IIP, CPI, and WPI inflation data, said market analysts.
In India, a key emerging market economy, analysts are pointing out that loosening monetary policy through interest rate cuts in the US amid weak growth projections could drive in investment inflows into India.
The Indian stock market exhibited volatility over the past week after touching a fresh lifetime high. The benchmark indices closed marginally lower amid mixed signals.
According to analysts, Indian stock markets experienced a sharp fall, tracking a sell-off in the US markets. Weak US manufacturing activity raised concerns that the economy might be slowing faster than anticipated.
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