Q4 Earnings, PMI Data, Foreign Trading Activity To Drive Markets In The Week, Say Analysts

Experts said that the equity markets would be impacted by the trading activity of foreign investors, fluctuations in the rupee and dollar, and changes in the global oil benchmark, Brent crude

In the last trading session on Friday, however, the indices reversed the rally and closed the day lower.

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Global factors, ongoing earnings season, and macroeconomic indicators would influence investors in the week, analysts noted. Experts said that the equity markets would be impacted by the trading activity of foreign investors, fluctuations in the rupee and dollar, and changes in the global oil benchmark, Brent crude. 

Commenting on the outlook for the week, Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, noted, “Domestically, the next batch of Q4 earnings reports will drive stock-specific movements, Hero MotoCorp, Larsen & Toubro, BPCL, State Bank of India, Eicher Motors and Tata Motors are some of the big names in the list and the next phase of voting.”

Further, the week will also see the release of PMI data for the services sector, reported PTI. The industrial production data for March will be revealed in the latter half of the week. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, stated, “On Monday, markets will react to the US employment data and Q4 results of companies like Dmart and Kotak Bank.”

Market experts said that the current Q4 earnings season will influence investors to a large extent. Vinod Nair, Head of Research, Geojit Financial Services, noted, “The market will also remain vigilant about the BoE (Bank of England) policy and GDP data from the euro zone. We expect a degree of consolidation in the market due to expensive valuations and any election-led jitters.”

Notably, the key equity benchmark indices, Nifty50 and Sensex, ended overall trading last week in green. The BSE Sensex jumped 147.99 points or 0.20 per cent, while the NSE Nifty50 gained 55.9 points or 0.24 per cent. In the last trading session on Friday, however, the indices reversed the rally and closed the day lower. The Sensex plunged 732.96 points or 0.98 per cent to close at 73,878.15, while the Nifty settled at 22,475.85, lower by 172.35 points or 0.76 per cent.