PMI, US-India trade talks to guide market sentiment this week: Analysts

Domestic manufacturing data, US Federal Reserve minutes, and progress in the India-US trade negotiations are expected to set the tone for Indian equities in the week ahead, according to market analysts. Additionally, foreign investor activity will play a significant role in determining short-term market direction, they said.Analysts noted that market sentiment will largely be shaped by key macroeconomic triggers, including India’s Purchasing Managers’ Index (PMI), US jobless claims, the Federal Open Market Committee (FOMC) meeting minutes, and developments in the bilateral trade talks between New Delhi and Washington.
“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,” stated Vinod Nair, Head of Research at Geojit Financial Services.In the previous week, the BSE Sensex jumped 1,346.5 points, or 1.62 per cent, while the NSE Nifty rose 417.75 points, or 1.64 per cent, supported by robust domestic cues. Nair added that markets closed the week on a firm note, buoyed by the resolution of the US government shutdown, stronger-than-expected Q2 earnings, and easing inflation.Siddhartha Khemka, Head of Research – Wealth Management at Motilal Oswal Financial Services, said capital-market-linked stocks witnessed increased activity, driven by strong retail participation, elevated SIP inflows, and optimism surrounding recent and upcoming IPOs.He further stated that Indian equities are likely to sustain their upward trajectory this week, supported by healthy domestic macros, solid corporate earnings, and the strong electoral mandate secured by the ruling NDA in Bihar, which reinforces political stability at the Centre.

(Business Correspondent)