Q4 Earnings, Inflation Data, General Election Updates To Influence Markets Ahead, Say Analysts

Market participants will also keep track of the trading activity of foreign investors, currency fluctuations of the rupee and dollar, along changes in the global oil benchmark, Brent crude in the week

Experts said that it remained crucial for investors to clock both global and domestic market indicators

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Domestic macroeconomic data such as inflation, current fourth-quarter earnings season, and global trends would drive markets in the week, noted analysts. The latest updates from the general elections would also influence investor sentiments, the experts said.

Further, the stakeholders will keep track of the trading activity of foreign investors, currency fluctuations of the rupee and dollar, along changes in the global oil benchmark, Brent crude, reported PTI.

Elaborating on the week’s market outlook, Santosh Meena, Head of Research, Swastika Investmart Ltd, noted, “Investors will be bombarded with economic data on both domestic and global fronts. Domestically, watch for Consumer Price Index (CPI) and Wholesale Price Index (WPI). Globally, focus will be on the US Producer Price Index (PPI) and Consumer Price Index (CPI) figures. Additionally, Federal Reserve Chair Jerome Powell's speech will be a key event to watch. China's industrial production data and Japan's GDP figures round out the important releases for the week.”

“The current trend in the domestic markets is likely to continue in the short-term due to election-led uncertainties. In the data-hectic week ahead, investors' attention will be focused on the release of India and US CPI data, Europe and Japan's GDP releases, and the FED chair speech. Furthermore, the next set of Q4 results will also attract market sentiment,” added Vinod Nair, Head of Research, Geojit Financial Services. 

Arvinder Singh Nanda, Senior VP, Master Capital Services Ltd, commented that the major earnings in the week are expected to be released by DLF, Zomato, Mahindra & Mahindra, and Bharti Airtel. “The outlook for the market will be guided by major global and domestic economic data, India's WPI inflation data, US PPI data, Core CPI data, initial jobless claims, Japan's GDP data, India Q4 company results and speech by Fed Chairman Jerome Powell,” Nanda noted.

Ajit Mishra, Senior VP - Research, Religare Broking Ltd, said that it remained crucial for investors to clock both global and domestic market indicators. “Despite the negative local sentiment, the strength observed in global markets, particularly in the US, has been instrumental in curbing the pace of decline. It's essential for investors to closely monitor both global market performance and local factors for market cues,” he expressed.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said that markets are expected to consolidate in a broader range and be impacted by the Q4 results, global macroeconomic factors, and news related to the general elections. Notably, both key equity benchmark indices, Sensex and Nifty, plunged last week. The BSE Sensex crashed 1,213.68 points or 1.64 per cent, while the NSE Nifty50 tanked 420.65 points or 1.87 per cent.