Your Monday playbook: Top factors that could move the markets this week

As Indian equity markets celebrate two weeks of steady gains, focus shifts to the Reserve Bank of India’s monetary policy committee (MPC) meeting next week. With economic momentum slowing, the RBI’s decision will be closely scrutinized for its potential to steer investor sentiment.

India’s GDP growth dipped to 5.4% in the second quarter, marking its weakest expansion in seven quarters. Compounding this, retail inflation surged to a 14-month high of 6.21% in October. These twin challenges put the central bank under pressure as it weighs its next move.

Key domestic indicators, including the Nikkei S&P Global Manufacturing PMI and Services PMI, are due early in the week, offering further clues about economic health. Traders will also parse Thursday’s release of cash reserve ratio data and Friday’s foreign exchange reserve figures for signs of liquidity trends.

Globally, Federal Reserve Chair Jerome Powell’s midweek speech will hold traders’ attention as markets seek clarity on the Fed’s policy trajectory. With U.S. manufacturing and services PMI data also in the pipeline, any signal of monetary tightening or easing could ripple across global markets. Additional insights may come from U.S. jobless claims and unemployment figures expected later in the week.

Europe and China will also be under the microscope, with GDP and trade balance data on the calendar, respectively. These reports will help investors gauge the broader global growth environment amid persistent uncertainties.

In the primary market, activity remains muted. However, eight companies are set to list next week, led by Suraksha Diagnostic on Friday. The SME segment will see the debut of Rajesh Power Services, C2C Advanced Systems, and others. Meanwhile, bonus and dividend adjustments for Wipro Ltd., Can Fin Homes Ltd., and Diamond Power Infrastructure Ltd. are among the key corporate actions to watch.

Last week, benchmark indices Nifty 50 and Sensex climbed 0.9%, closing Friday on a high note. Gains were broad-based, with 20 out of 21 sectoral indices rising. Healthcare led the pack, while Realty was the sole laggard.

As the MPC meeting approaches, markets will likely tread cautiously, balancing domestic indicators with global developments. Investors, policymakers, and businesses alike will be looking for signs of stability in an increasingly complex economic landscape.