Factors that will guide the markets this week

The domestic equity market, which is on a record-breaking spree, will focus on macroeconomic data announcements, movement in global stocks and the US Fed minutes to get further direction, analysts said.

Trading activity of Foreign Institutional Investors (FIIs) will also innfluence investors.From the domestic macroeconomic front, Purchasing Managers' Index (PMI) data for the manufacturing sector will be released on Monday, and that o,f the services sector on Wednesday.

Investors, this week, will keenly watch major global market events, icluding the outcome of the Federal Open Market Committee (FOMC) minutes, scheduled to be out on Wednesday.

"This week, the market will take cues from economic data to be released locally as well as globally. Investors would also watch out for FOMC minutes to get insights into the US Central Bank's future course of direction," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said.

Auto stocks will be in focus on Monday after declaring their sales data for June on Saturday.

In global markets, investors will closely monitor the movement of crude oil prices, the dollar index and US bond yields, said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

"On the marco front, global services PMI, US nonfarm payrolls data and the unemployment rate will be lined up between July 3 and July 7.

"Additionally, institutional activity will also have a significant impact on market trends," Gour added.

Last week, the BSE benchmark jumped 1,739.19 points or 2.76 per cent, and the Nifty climbed 523.55 points or 2.80 per cent.

On Friday, the 30-share BSE Sensex jumped 803.14 points or 1.26 per cent to settle at its lifetime closing high of 64,718.56.

During the day, it zoomed 853.16 points or 1.33 per cent to reach its record intraday peak of 64,768.58.

The NSE Nifty climbed 216.95 points or 1.14 per cent to end at a record high of 19,189.05.

During the day, it rallied 229.6 points or 1.21 per cent to hit its all-time intraday peak of 19,201.70.

Market analysts said that factors that trigerred the market rally last week include increased buying from foreign investors, a revival in monsoon and the positive impact of the HDFC merger updates.

"The market's upward momentum was further supported by strong inflows from FIIs, the merger update of HDFC and a narrowing current account deficit.

"Globally, investor confidence was uplifted by favourable revisions in US Q1 GDP, a decline in jobless claims and positive outcomes from the US bank stress test conducted by the Fed," said Vinod Nair, Head of Research at Geojit Financial Services.

Meanwhile, HDFC Ltd, the parent of the country's largest private sector lender, merged into HDFC Bank on Saturday, with boards of both the entities clearing the plan first presented on April 4 last year.

India's manufacturing and services PMI data will be in focus this week, Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said.