IIP, inflation data key for stock markets this week: Experts
Mar 10 2013 , Mumbai
"Sensex and Nifty enjoyed one of the best weeks in past two years of economic downturn, thanks to several positive developments in the global and domestic markets. However, this unusual enthusiasm should not be seen as an early economic recovery in the country," said Aditya Trading Solutions (ATS) Founder Vikas Jain.
Besides, stock markets will take cues from IIP and inflation data this week and RBI's monetary policy on March 19 will keep investors on a cautious mode, he added.
Industrial production for January will be announced on Tuesday, consumer price index for February will also be on the same day. The data on inflation based on wholesale price index for February will be declared on Thursday.
Market experts said that data on industrial production and inflation could provide cues to the likely monetary policy stance of the RBI at its mid-quarter monetary policy review.
"Markets may see consolidation this week in the range 5,975-5,850 (Nifty). Global cues shall be crucial in coming sessions and so will be the inflation and IIP data," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
In the coming sessions, 5,950 shall be crucial deciding level in near-term, and Nifty is likely to witness further buying above this level, he said.
Markets will on Monday also react to the US jobs data for February. The unemployment rate in the US has dropped to 7.7 per cent -– the lowest level since the end of 2008 -- with the addition of 2,36,000 new jobs in February.
The Bureau of Labour Statistics in its monthly report said on Friday that the total non-farm payroll employment increased by 2,36,000 in February and the unemployment rate edged down to 7.7 per cent.
The latest figures reflect an upward trend in the US economic recovery.
Besides, back home the quarterly advance corporate taxes due by March 15 may also provide cues to the Q4 corporate earnings.
In the stock market, the BSE benchmark Sensex advanced by 764.71 points, or 4.04 per cent, to 19,683.23, the biggest weekly gain so far this year.