NEW DELHI: The rupee’s movement against the US dollar, crude oil prices and global trends are likely to chart the stock market’s course this week, say experts.
The continuous fall of the rupee and rising global oil prices are key dampening factors, raising renewed concerns over inflation.
The rupee on Friday fell by 26 paise to reach a historic low of 71 for the first time against the US dollar due to rising crude oil prices.
“The market is expected to remain in the profit-booking zone. IT stocks are undoubtedly riding on the bandwagon of rupee depreciation, but in the short to medium term they have reached their overbought levels and are likely to correct soon,” said Jimeet Modi, Founder and CEO, SAMCO Securities.
However, other export-oriented industries like textiles, auto-ancillaries have still some more room left for an up move, he added.
“The coming week will start off with manufacturing and services PMI data,” said Mustafa Nadeem, CEO, Epic Research.
Auto stocks will also remain in focus with the release of monthly sales data. The quarterly gross domestic product (GDP) numbers were released after market hours on Friday.