Q1 earnings, inflation, industrial production data to guide market trends this week: Analysts

New Delhi, July 9: Trading in the equity market this week will be highly influenced by a host of important triggers, with quarterly earnings from IT majors TCS, Wipro, and domestic inflation and IIP data taking the centre stage in dictating the movement in equities, analysts said.

Besides, global factors and trading activity of foreign investors will also drive markets.

“We are approaching the first quarter earnings season, with HCL Tech, TCS and Wipro set to report their earnings this week. Furthermore, market participants will react to the inflation and IIP (Index of Industrial Production) data scheduled for release on July 12. The US macroeconomic indicators and the movement of crude oil prices will also be closely monitored,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Investors would also track the WPI (Wholesale Price Index) inflation data for June which is scheduled to be announced on Friday.

From the earnings front, Federal Bank, Bandhan Bank and JSW Energy would also announce their June quarter results during the week.

Stock-specific action will pick up with the onset of the Q1 FY24 earnings season, Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, said.

Technology sector is likely to remain in focus with TCS and HCL Tech announcing their results on Wednesday followed by Wipro on Thursday, Khemka added.

“Global and domestic cues, upcoming quarterly season, India’s inflation data, IIP number, FII and DII (Domestic Institutional Investor) activities will be the key factors that will drive the market in the coming days,” Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said.

Last week, the 30-share BSE benchmark jumped 561.89 points or 0.86 per cent. The BSE Sensex hit its all-time intra-day peak of 65,898.98 on July 7.

The market capitalisation of BSE-listed firms hit a lifetime peak of Rs 301.70 lakh crore on Thursday, mirroring a positive trend in domestic equities.

“The Indian equity market experienced another week of record highs, primarily driven by aggressive buying from Foreign Institutional Investors (FIIs). However, profit-booking occurred in the last trading session due to weak global cues, particularly the increase in US bond yields,” Meena said.

The BSE benchmark fell by 505.19 points or 0.77 per cent on Friday after a record rally.

“The market was overheated after the spectacular rally in recent sessions and profit-taking was due for sometime. With fresh concerns over interest rate hike by the US Fed resurfacing, investors shunned equities at will triggering a massive fall on the last day of the trading week,” said Amol Athawale, Vice President – Technical Research, Kotak Securities Ltd. (PTI)