Actions must be guided by RBI rate decision: analysts

The domestic equity market will likely be guided by a host of key macroeconomic data announced this week, mainly the RBI's interest rate decision, badysts say.

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

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

Auto stocks will remain the focus of concern when announcing monthly sales data on Monday.

In addition, the movement of foreign funds, the trend of the rupee and the results of US-China trade negotiations would also be monitored, said an badyst.

Foreign institutional investors sold shares worth 86.21 crores on Friday, while domestic institutional investors bought shares worth 1,724.39 crores, according to preliminary data.

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

"Investors should look for current events in the Indian market for this week.Where, we should keep an eye on the Tuesday manufacturing PMI Nikkei, while in the banking sector, we should look at the monetary policy of RBI Thursday.The auto titles sales figure is coming this week, "said Debabrata Bhattacharjee, head of research at CapitalAim.

In the last week, the Senbad gained more than 508 points, or 1.33%, while the Nifty gained 167 points or 1.45%.

"India will likely continue to outperform emerging markets due to the influx of capital invested in IIE investment, the expected recovery in earnings growth and political stability" said Vinod Nair, head of research at Geojit Financial Services.

As this week marks the beginning of the new exercise, all eyes are on elections in Lok Sabha, which are scheduled to take place in seven phases starting April 11.