RBI rate decision, macro data announcement to drive equities this week

The domestic equities market is likely to be guided by a host of key macroeconomic data announcement lined up this week, mainly the RBI interest rate decision, say analysts.

The Reserve Bank of India (RBI) interest rate decision is scheduled to be announced on April 4.

During the week, PMI data for the manufacturing and services sector, which would also influence trading sentiment, will also be released.

Auto stocks will remain in focus amid monthly sales data announcement on Monday.

Besides, foreign fund movement, trend in rupee and outcome of the US-China trade talks would also be monitored for further cues, analysts said.

Foreign institutional investors (FIIs) sold shares worth a net of Rs 86.21 crore on Friday, while domestic institutional investors (DIIs) purchased shares worth Rs 1,724.39 crore, provisional data showed.

The rupee, meanwhile, appreciated 16 paise to close at 69.14 against the US dollar on Friday.

"Investors should look for the line up events in the Indian market for this week. Where, one should keep an eye on Nikkei manufacturing PMI on Tuesday, while related to banking industry one should look for RBI's monetary policy on Thursday. Auto stocks will be in focus as sales number is coming on this week," said Debabrata Bhattacharjee, Head of Research, CapitalAim.

Over the last week, the Sensex advanced over 508 points, or 1.33 per cent, while the Nifty gained 167 points or 1.45 per cent.

"India is likely to continue its outperformance among emerging markets due to FII inflow, expectation of revival in earnings growth and political stability," said Vinod Nair, Head of Research, Geojit Financial Services.

As this week marks the beginning of the new financial year, all eyes are set on the Lok Sabha elections scheduled to be held in seven phases beginning April 11.