Markets Next Week To Clock The Start Of Earnings Season, Await Macro Data, Say Analysts

Experts said that foreign investors’ trading activity, currency fluctuations in rupee and dollar, along with movements in crude oil prices would also impact investor sentiments and market trends

Markets in the week will be driven by global trends, macroeconomic data announcements, and the launch of the earnings season, noted analysts. The markets will remain closed on Thursday to observe the festival of Eid-Ul-Fitr. At the same time, experts said that foreign investors’ trading activity, currency fluctuations in rupee and dollar, along with movements in crude oil prices would also impact investor sentiments and market trends. 

Elaborating on the outlook ahead, Santosh Meena, Head of Research, Swastika Investmart Ltd, noted, “Indian companies are set to enter a new corporate earnings Q4 season this week. Leading the pack is IT services giant TCS, set to kick off the earnings season for the quarter ending March 2024. Its results for the fourth quarter of FY24 will be announced on April 12, 2024, after market trading hours. Apart from that India's industrial production data will also be announced on 12th April 2024. On the same day, inflation for March will be declared,” reported PTI.

Meena noted that investors will keenly observe the ‘movement of the rupee against the dollar, crude oil prices, and investment activities of Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs)’. Notably, the markets last week saw key equity indices reach fresh highs. The BSE Sensex gained 596.87 points or 0.81 per cent and also hit a fresh peak of 74,501.73 on April 4. 

Arvinder Singh Nanda, Senior VP, Master Capital Services Ltd, stated, “The outlook for the market will be guided by major global and domestic economic data, India's CPI data and IIP, US consumer inflation, US business optimism index, US initial jobless claims and ECB (European Central Bank) interest rate decision.” Ajit Mishra, SVP - Technical Research, Religare Broking Ltd, said, “This week marks the beginning of the earnings season and the focus will be on the IT majors to start with.” 

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, added that the market is expected to consolidate in a broader range with stock-specific action.