Q1 Earnings, Inflation Data, Investors’ Activity To Drive Markets This Week, Say Analysts

Company earnings lined up for the week include Avenue Supermarts, HCL Tech, 5paisa Capital, Tata Elxsi, etc. The analysts said that markets could also consolidate after the record rally made last week

The BSE Sensex last week reached a fresh peak of 80,392.64 on July 4, while the NSE Nifty50 hit a record all-time high of 24,401 on the same day. (Image Source: Unsplash)

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Global economic trends and foreign investors’ trading activity are expected to drive market sentiment in the week, analysts noted. Further, the first quarter earnings from companies including TCS and HCL Tech will also impact investors ahead, the experts noted.

Company earnings lined up for the week include Avenue Supermarts, HCL Technologies, TCS, 5paisa Capital, Tata Elxsi, etc. The analysts said that markets could also consolidate after the record rally made last week, reported PTI.

Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, noted, “On the domestic front, the Q1 earnings season begins this week. Key companies such as TCS and HCL Technologies will release their earnings on July 11 and 12, 2024, respectively. Additionally, India's Union budget in July is a key event, with hopes pinned on growth-oriented policies and development of monsoon season, which will also be significant points of interest for investors and traders.”

Gour pointed out that Jerome Powell, Chair, US Federal Reserve is also scheduled to deliver his testimony on July 9, 2024. Additionally, market will also clock out the movements of foreign and domestic institutional investors (FIIs and DIIs), and keep an eye on fluctuations in crude oil prices, he added.

Notably, the BSE Sensex last week reached a fresh peak of 80,392.64 on July 4, while the NSE Nifty50 hit a record all-time high of 24,401 on the same day. The Sensex gained 963.87 points or 1.21 per cent in last week trading, while the Nifty climbed 313.25 points or 1.30 per cent.

Sharing further insight, Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said, “The outlook for the market will be guided by major domestic and global economic data such as India's CPI, industrial production, Fed speech, UK GDP data, US core CPI inflation and initial jobless claims.”

Vinod Nair, Head of Research, Geojit Financial Services, stated, “As the market enters the earnings season, starting with IT bellwether TCS, expectations are optimistic for better results. Investors will closely watch management commentary for insights into the sector's outlook.”

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, shared his expectations and said that market is projected to take clues from stock and sector-specific movements along with the Q1FY25 earnings. Investors will also observe the inflation data set to be released by India, China, and the US, he added.