The upcoming Union Budget scheduled for Tuesday along with the current earnings season are expected to drive market sentiments this week, analysts noted. The trade experts pointed out that global economic trends and trading activity of foreign investors will further have a crucial impact on the movements in the market.
Fluctuation in currency movements in rupee and dollar, along with the variations in the global oil benchmark Brent crude will also be key factors to be observed in the week, reported PTI.
Elaborating on the factors ahead, Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, explained, “The upcoming Union Budget on July 23, 2024, has become the next focal point for the market, with high expectations for growth-oriented policies. Several factors will influence the market direction, including Q1 FY25 earnings, domestic and global economic data, and broader global market trends. Market sentiment will be closely monitored by observing foreign and domestic institutional investor activity (FII and DII) and crude oil prices.”
The major earnings lined up for the week include Bajaj Finance, Axis Bank, Bajaj Finserv, DLF, Tech Mahindra, Nestle, Hindustan Unilever, and Larsen & Toubro. Vinod Nair, Head of Research, Geojit Financial Services, stressed that the Union Budget will provide an insight into the directions ahead for the market. The analyst said that the policies included in the Budget will line up the economic pathway for the nation in the fiscal year.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, added that the ongoing first quarter earnings season will also be in full force and result in stock-specific reactions in the marker.
Further, on Monday, investors will keenly observe the movements in HDFC Bank as the lender reported a jump of over 33 per cent in its consolidated net profit to Rs 16,474.85 crore in the quarter ended June 30, 2024.
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