Markets Ahead: Hindenburg Allegations, Q1 Earnings, Inflation Data To Influence Investors In The Week

Equity markets will also keenly observe stance taken by the foreign investors towards the domestic markets and the movements in Indian currency against its American counterpart

Global economic data, conclusion of the Q1 earnings season, and latest allegations made by Hindenburg Research are expected to drive markets and influence investors in the week, analysts noted. The week remains shortened already due to the upcoming holiday on Thursday to mark the Independence Day of the country.

US-based short seller, Hindenburg Research, in its latest report on August 10 alleged that SEBI Chair Madhabi Puri Buch and her husband Dhaval Buch owned stakes in offshore funds alleged to be involved in siphoning funds for the Adani Group. The capital markets regulator head has vehemently rejected the allegations. Even Adani Group has come out to call the claims made in the latest report 'malicious and manipulative'. This is also to impact investors' sentiments in the markets in the week.

Experts stated that equity markets would also keenly observe stance taken by the foreign investors towards the domestic markets and the movements in Indian currency against its American counterpart, reported PTI. The major domestic earnings expected in the week include Hero MotoCorp, Hindalco, Vodafone Idea, and IRCTC, among others.

Explaining the outlook for the week, Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, stated that the focus in the coming days would be on the global markets ‘as we can see the extension of weakness after a long period of stability’. 

The analyst noted that while the geopolitical tensions have been escalating, there hasnt been sufficient reaction from the markets and that is visible in the decreasing crude oil prices. “The Indian equity market could also witness some bit of levelling off this week as investors process recent gains and contend with high prices,” Gour added.

The expert pointed out that the remaining companies to report Q1 earnings would leave a major impact on the markets and result in stock-specific movements. 

Domestically, India is expected to reveal the WPI inflation figures on Wednesday, while inflation levels for July will be released on Monday. The industrial production data for June is also scheduled for the beginning of the week.