Week ahead: Markets eyeing India numbers, US Fed report, others data for further cues

Markets likely to rise amid a slew of data due to be released this week

The market is likely to maintain its strong momentum this week during which a slew of data from India, the US, Europe and Asia is expected.

The HSBC Services PMI (Final) numbers for February will be released on March 5. As per the preliminary data, the India Services PMI jumped to 62 in February, from 61.8 in January 2024.

Bank loan and deposit growth for the fortnight ended February 23, and foreign exchange reserves for the week ended March 1 will be announced on March 8.

Data-heavy week for US

Market participants will also closely track the US Federal Reserve chairman Jerome Powell’s senate testimony on March 6-7 in which he will present the semi-annual monetary policy report, which update on inflation and cues to interest rate cuts.

Investors will also pay attention to US's monthly services PMI data due on March 5, US job openings data the next day, initial jobless claims and US trade balance data on March 7. On March 8, the US will release its nonfarm payrolls, unemployment rate, and hourly wage data.

A strong performance in the job market is likely to influence the US Federal Reserve's cautious stance, CR Forex Advisors said. The upcoming jobs report might shrink the probability of the June rate cut and total cut for the year, it added.

Europe interest rate decision, China inflation on radar

The European Central Bank (ECB) will meet on March 7 to discuss its rate decision. The central bank is likely to hold interest rates steady.

On January 24, ECB kept the interest rate on the main refinancing operations, marginal lending facility and the deposit facility unchanged at 4.50 percent, 4.75 percent and, 4 percent, respectively.

The third estimate for Euro zone GDP numbers for Q3CY23 and China's inflation will also be announced next week.

These events will be watched for their potential impact on market sentiment, said Santosh Meena, Head of Research, Swastika Investmart.

Home front 

At home, political developments leading up to parliamentary elections will be tracked, with potential support for Nifty Bank.

The Nifty could remain positive and move towards 22,700 levels in the coming sessions, ICICI Securities said. "The index has retraced past five sessions decline in just a single session, highlighting faster retracement that makes us reiterate our positive stance and expect Nifty to head towards 22700 in coming weeks," analysts at ICICI Securities said. The level of 21,800 is likely to act as immediate support in the upcoming truncated week, they said.

CR Forex Advisors also highlighted that a flurry of IPOs is set to dominate the market this week. "RK Swamy, JG Chemicals, and Gopal Snacks are poised to raise a combined Rs 1,324 crore through mainboard IPOs, while four SMEs including VR Infraspace, Sona Machinery, Shree Karni Fabcom, and Pune E-Stock Broking are gearing up for subscription. Additionally, the market will see the debut of eight new company listings, ensuring a bustling week ahead."

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