Market outlook: Investors to focus on foreign selling, US tariffs, geopolitical risks, and PMI data next week

New Delhi [India], March 2 : In absence of major domestic events next week starting from Monday, the investors in the Indian stock markets will watch trends of foreign sellings, developments around the US tariffs, geopolitical risks, and upcoming Purchasing Managers' Index (PMI) releases.
According to the market analysts, market may see volatilities in the upcoming week, continuing its previous trends.
"With no significant domestic events on the horizon, global factors--such as developments around tariffs, geopolitical risks, and FII trends--will remain in focus. Additionally, as the new month begins, market participants will closely track high-frequency data, including auto sales and PMI figures," said Ajit Mishra - SVP, Research, Religare Broking Ltd.
He added, "Uncertainty often weighs more than the actual event, and the market is currently grappling with concerns over potential trade wars."
Market analysts also say that the persistent Foreign Institutional Investor (FII) selling wil continue to add pressure to the sentiments of the investors.
In its weekly commentary, Bajaj Broking Research team added that first week of March 2025 will be crucial for market sentiment, with key data releases shaping trends. On March 1, Indian auto companies will report monthly sales estimates, providing insights into demand across vehicle segments, as per the research team.
Additionally, it added, "Manufacturing and services activity will be tracked through S&P Global PMI data (March 3 & 5) for India and the US, while ADP Nonfarm Employment Change (March 5) will offer a glimpse into US job market trends."
March 6 and 7 will focus on US labour market data, including Initial Jobless Claims, Nonfarm Productivity, Nonfarm Payrolls, and Unemployment Rate, which could influence Federal Reserve policy expectations, the research team of Bajaj Broking added.
"With global liquidity, interest rate expectations, and domestic fiscal trends in focus, markets may see volatility, creating opportunities in auto, banking, and consumer sectors," the Bajaj Broking Research team said.
Anticipating the mood of investors for the next week, Manish Goel, Founder and MD, Equentis Wealth Advisory Services, said, "All eyes are now turning to the upcoming PMI releases, particularly the Manufacturing data on March 3, and the Services PMI on March 5, where analysts are seeing a glimmer of optimism within the manufacturing data."
Markets ended their week-long consolidation phase with a sharp 3 per cent decline, primarily driven by weak global cues.
Concerns over the impact of US tariffs on global trade and persistent foreign fund outflows kept the sentiment negative from the outset.
Although select heavyweights attempted to limit the downside midweek, a sharp selloff in the final session confirmed the bearish tone.
As a result, both benchmark indices, Nifty and Sensex, closed at their weekly lows of 22,124.70 and 73,198.10, respectively.
All major sectors moved in line with the broader market, posting losses, with IT, realty, and energy emerging as the top underperformers. After a brief pause, the broader indices also resumed their downward trajectory, losing between 5-6 per cent.