The quarterly results of blue-chip companies HDFC Bank and Hindustan Unilever, as well as the publication of WPI inflation data and global trends, will mainly determine movement in the stock market this week, according to analysts, as reported by a news agency. PTI.
In addition to this, Business activity of foreign investors, global oil benchmark Brent crude and rupee-dollar trend would also guide the movement.
“The focus will shift to Q3 earnings, with key players such as HDFC Bank, HUL, Asian Paints, IndusInd Bank and Ultratech Cement set to announce their results. Pre-budget expectations are also likely to influence sector and stock-specific movements. ,” Santosh Meena, Head of Research, Swastika Investmart Ltd said as quoted by PTI.
As the market prepares for the Budget, institutional flows will play a crucial role in determining its direction, he added.
On Monday, WPI inflation data for December is also scheduled to be announced. “On the global front, macroeconomic data from the US and China, along with movement of the dollar index, US bond yields and oil prices, will be closely monitored. Geopolitical tensions worldwide continue to be a source of uncertainty, requiring the market to pay close attention,” said Meena. .
In a double whammy for the economy, retail inflation soared to a four-month high of 5.69 percent in December, while industrial production fell to an 8-month low of 2.4 percent in November, according to a set of government data released on Friday.
“This week, the market will take cues from the December quarter results and India’s inflation data,” said Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services Ltd.
Last week, the BSE benchmark jumped 542.3 points, or 0.75 percent, and the Nifty climbed 183.75 points, or 0.84 percent. Benchmark equity indices Sensex and Nifty rose over 1 percent to hit their fresh all-time highs on Friday.
“Q3 FY24 earnings season will be the biggest factor to drive the market movement. Trends in global markets, domestic and global macroeconomic data, crude oil prices and the movement of rupee against the dollar will also dictate trends this week.
According to Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, “Investment by FPIs (Foreign Portfolio Investors) and DIIs (Domestic Institutional Investors) will also be monitored.”
On Monday, shares of Wipro and HCL Technologies may remain in focus after they declared their earnings after market hours on Friday. Wipro posted a nearly 12 percent decline in consolidated net profit at ₹2,694.2 crore in the third quarter ended December 2023 amid a “cautious” demand environment and customers making conservative investments while HCL Technologies reported a 6.2 percent increase in consolidated net profit at. ₹4,350 crore, the highest ever quarterly, in the three months ended December 2023 due to the growth of both services and software businesses.
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Published: 14 Jan 2024, 11:45 IST