Geopolitical Conflicts, Earnings Season, Fund Flows To Drive Markets In The Week: Analysts

Market experts said that fluctuations in the Brent crude oil prices and currency changes in terms of rupee and dollar would impact the stock markets ahead

The BSE benchmark Sensex plunged 1,156.57 points or 1.55 per cent, while the NSE Nifty50 fell 372.4 points or 1.65 per cent last week

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Conflicts in the Middle East region surrounding Iran-Israel, the company’s financial results for the fourth quarter, along with trading activity of foreign investors would help influence the stock markets in the week, analysts noted. 

Further, market experts said that fluctuations in the Brent crude oil prices and currency changes in terms of rupee and dollar would impact the stock markets ahead, reported PTI. 

Commenting on the market outlook, Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, said, “This week will be crucial for the market amid ongoing worries about the conflict between Iran and Israel. If tensions escalate significantly, there's a risk of panic selling and increased volatility across global stock markets. Moreover, the market will be keeping a close eye on fluctuations in crude oil prices, as geopolitical events frequently impact them.”

Gour added that amongst the major earnings lined up ahead, Tech Mahindra, Bajaj Finance, Baja Finserv, Nestle, HCL Tech, and Maruti will be clocked by the investors. “Among global events, the Bank of Japan will announce its interest rate decision on April 26, 2024. Movement in US bond yields and the dollar index will be important factors influencing market sentiment,” he pointed out. 

Notably, the key equity indices slipped majorly last week. The BSE benchmark Sensex plunged 1,156.57 points or 1.55 per cent, while the NSE Nifty50 fell 372.4 points or 1.65 per cent. 

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, stated, “This week focus will remain on earnings season along with global cues. Index heavyweights like Hindustan Unilever, Maruti, and Bajaj Finance will announce their results. Investors would also track economic data points like manufacturing & services PMI data of the US, US Q1 GDP number, and Japan's policy statement.”

Ajit Mishra, SVP - Research, Religare Broking Ltd, noted that markets last week moved lower due to excessive volatility and declined more than one and a half per cent. He added that the volatility next week is anticipated to remain high amidst weak global trends and the current earnings season.