Q1 Earnings, Inflation Data, Pre-Budget Discussions To Drive Sentiments In Market Ahead, Say Analysts

The stock market next week will observe a holiday on Wednesday to mark the occasion of Muharram. Further, many companies like Infosys, BPCL, JSW Steel, and Bajaj Auto will release their Q1FY25 results

Quarterly earnings from major companies like Reliance Industries, foreign investors’ trading activities, and global trends will drive sentiment in the market ahead, noted analysts. The experts said that the trading week ahead remains shortened due to a holiday and macroeconomic announcements such as WPI inflation data for June will have a major impact on the movements.

The stock market next week will observe a holiday on Wednesday to mark the occasion of Muharram. Further, many companies will also release their financial results for the first quarter of the current financial year 2024-25. Some of these firms include Infosys, HDFC Life Insurance Company, BPCL, JSW Steel, Asian Paints, and Bajaj Auto, among others.

India will also see the release of the WPI inflation figures for June on Monday. Elaborating on the market movements ahead, Santosh Meena, Head of Research, Swastika Investmart Ltd, said, “Q1 earnings will be a key focus this week as numerous companies, including heavyweights Infosys, and Reliance, are set to release their results. Additionally, pre-Budget discussions are expected to contribute to market volatility. On the global front, a significant focus will be on China. The country is scheduled to announce its GDP and Industrial Production (IIP) numbers. Other global factors to watch include the speech by the US Federal Reserve Chairman, US retail sales figures, and macroeconomic data from Japan.”

Notably, the European Central Bank (ECB) is also scheduled to reveal its interest rate decision in the week, reported PTI. Vinod Nair, Head of Research, Geojit Financial Services, stated, “We expect stock-specific moves to gain traction due to the ongoing earnings season; indeed, IT will be in the limelight due to the good start to the earnings and outlook. In the week ahead, economic data like China GDP, EuroZone CPI inflation, ECB policy, and the US Fed chair speech will be watched by investors to get cues on market momentum.”