Global Trends, Q2 Earnings, Macroeconomic Data To Influence Market Momentum This Week: Analysts

Among the companies set to release their earnings for the second quarter of the current fiscal year in the week IRCTC, Power Grid, Tata Power, Coal India, and Tata Chemicals as some of the major ones.

Global trends, the ongoing quarterly earnings season, and foreign investors’ trading activity will drive the markets in the week, analysts noted. Further, market experts stated that the investors would also keenly observe the global oil benchmark Brent crude and the trend of the Indian and American currencies.

Citing Santosh Meena, research head at Swastika Investmart Ltd, news agency PTI said, “On the domestic front, the upcoming release of Q2 earnings report is expected to have a significant influence on market sentiment. If FIIs (Foreign Institutional Investors) shift to net buying, it could further propel the market's upward movement.”

Meena acknowledged that geopolitical concerns do exist, but they had a limited impact on the overall movement in the markets recently. The analyst added that the resilience of the global markets would be key in deciding the long-term sustainability of this positive movement. 

On the global level, industrial production data is set to be revealed on Friday this week after market hours. Arvinder Singh Nanda, senior vice president at Master Capital Services Ltd, said, “Global and domestic macroeconomic events, FII, DII (Domestic Institutional Investors) investment pattern, crude oil inventories, movement of the rupee against the dollar, US bond yield, the ongoing Israel-Hamas conflict, the ongoing Q2 earning season will dictate the trend in the market this week.”

Among the companies set to release their earnings for the second quarter of the current fiscal year, Nanda noted HPCL, NHPC, IRCTC, Power Grid, Tata Power, Ashok Leyland, Coal India, Hindalco, LIC, Mahindra & Mahindra, and Tata Chemicals as some of the major ones.

Notably, the benchmark indices gained momentum last week. The BSE Sensex climbed 580.98 points or 0.91 per cent, while the Nifty jumped 183.35 points or 0.96 per cent during the week. During the last trading session, Sensex inched up 0.44 per cent to settle at 64,363.78 and Nifty increased 0.51 per cent to close at 19,230.60 on Friday. 

Vinod Nair, head of research at Geojit Financial Services, noted, “The optimism is buoyed by firm global clues, steady macroeconomic data and strong domestic corporate earnings. Clues that Fed is unlikely to hike rates in the future and modest decline in oil prices are adding to the optimism.”