Markets Ahead: Inflation Data, Q3 Earnings, Global Trends To Drive Sentiments, Say Analysts

Major Q3 earnings expected in the week include Easy Trip Planners, Aditya Birla Fashion & Retail, United Breweries, Senco Gold, and Hindalco Industries, among others.

Stakeholders will also keep a lookout on the testimony from Fed Chair, Jerome Powell, regarding insights about interest rate expectations.

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Major macroeconomic announcements such as inflation data and global market trends will dominate the sentiment in the market in the coming week, analysts noted. The experts said that investors will also keep track of the trading activity of foreign institutional investors along with fluctuations in currency movements of the rupee and dollar.

India’s industrial production data and inflation data is scheduled to be released on February 12 this week. Major Q3 earnings expected in the week include Easy Trip Planners, Aditya Birla Fashion & Retail, United Breweries, Senco Gold, and Hindalco Industries, among others, reported PTI.

Puneet Singhania, Director, Master Trust Group, noted, “This week is set to be dynamic for global and Indian markets, driven by key macroeconomic data releases and corporate earnings. Market sentiment will be shaped by inflation figures, industrial production data, and major earnings announcements.”

The US inflation data for January will be released on Wednesday. The expert said stakeholders will also keep a lookout on the testimony from Fed Chair, Jerome Powell, regarding insights about interest rate expectations. “On Thursday, the UK's GDP growth data will be released and on Friday the US retail sales data for January will provide insights into consumer spending. Corporate earnings will also drive market sentiment. Major companies reporting earnings include Eicher Motors, Grasim Industries, Vodafone Idea, Steel Authority of India,” Singhania added.

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said that the atmosphere in the market is expected to improve as the BJP returned to power in New Delhi after it defeated the Aam Aadmi Party. “The sentiments in the Indian market are slowly improving in response to an excellent Budget and the rate cut by the MPC. The victory of the BJP in the Delhi elections is a major achievement for the ruling dispensation. This is likely to positively impact the market in the short run. However, the medium to long-term trend in the market will depend on the recovery in GDP growth and earnings recovery,” Vijayakumar noted.