Market Outlook: PMI, FII Inflows, and Global Economic Data to Shape Next Week's Market Trend

New Delhi (The Uttam Hindu): The next week is going to be very important for the Indian stock market. The trend of the stock market will be decided by PMI, FII, loan and deposit growth of Indian banks and global economic data.

In India, the Composite Purchasing Managers Index (PMI) data will be released on Monday. Composite PMI is an average of service and manufacturing output. It acts as a high frequency indicator for the economy, which helps the Reserve Bank of India (RBI) in deciding the direction of monetary policy. At the domestic level, data on bank loan and deposit growth will be released on Friday.

Apart from this, many important economic data will also be released at the global level, which can have an impact on the market, including US jobless claims, US new home sales and UK GDP data. Last week was very good for the Indian stock market. Nifty rose 4.26 percent to 23,350.40 and Sensex rose 4.17 percent to close at 76,905.51.

The rally was led by financial stocks. The Nifty Bank index rose 5.27 percent and the Nifty Financial Services index rose 5.49 percent. Smallcaps and midcaps also saw strong buying compared to largecaps. The Nifty Midcap index closed up 7.8 percent and the Nifty Smallcap index closed up 8.5 percent.

Now foreign institutional buyers (FIIs) have become net buyers. In the trading session from March 17 to March 21, FIIs invested Rs 5,819 crore in equity. At the same time, domestic institutional investors (DIIs) invested Rs 4,337.80 crore in equity.

Putin Singhania, Director, Master Trust Group, says that last week Nifty closed in the green in all five trading sessions. Now 23,050 will be an important support for Nifty. If it breaks this, then 22,800, 22,700 and 22,500 will be a strong support zone.