Macro factors, monsoons to drive equity indices

Mumbai: Global factors such as concerns over trade wars and further developments on tariffs, along with the decision of the Organisation of Petroleum Exporting Countries (OPEC) to marginally increase oil production, would drive the domestic equity market in the week ahead.

According to market analysts, progress in the monsoon rains and the macro-economic data due later in the week would also give the market cues. "The rise in oil prices after the modest supply increase by OPEC would dampen the sentiment in stocks, bonds and the FX (forex) markets," Delta Global Partners' Founder and Principal Partner Devendra Nevgi told IANS. Global event risks, especially the developments on trade wars between the US and China, would be closely monitored, he said.

Geojit Financial Services' Head of Research, Vinod Nair said: "Progressing monsoon and positive outlook on rural market is giving boost to the economy, which is already showing signs of improvement." However, the risk of downgrade in financial year 2019 earnings followed by weak fourth quarter earnings would test investors sentiment, Nair said.