Investors will take cues from December quarter corporate earnings, inflation data and trading activity of foreign investors.
Last week, the BSE benchmark fell 1,844.2 points or 2.32 percent, and the Nifty shed 573.25 points or 2.38 percent.
Investors will take cues from corporate earnings for the December quarter, with blue chips such as Infosys, Reliance Industries reporting their results this week, besides inflation data and trading activity by foreign investors. will also be important in determining market trends, analysts said. .
A week ahead for Indian equity markets
Crude oil price movements and the dollar index will also be tracked by investors. Rising US bond yields as well as a stronger US dollar weighed on investor confidence last week.
“Indian equity markets are set for a volatile week ahead, as investors eagerly await the release of Q3 earnings reports from major companies.
Key income to watch
“Prominent names like Infosys, Reliance Industries, HCL Technologies, HDFC AMC, HDFC Life Insurance Company, and Axis Bank are set to unveil their financial performance, which will boost market sentiment. is likely to impact significantly,” Parvesh Gaur, Senior Technical Analyst, Swastika Investmart Ltd, said.
FII vs DII tug-of-war
Adding to the market volatility, the tug-of-war between Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) continues, he said.
Macro data: CPI and WPI releases
“The release of India’s CPI on Monday will be a key factor,” said Siddhartha Khemka, head of research, wealth management at Motilal Oswal Financial Services Ltd.
The WPI inflation data is due on Tuesday.
Last week’s market decline
Last week, the BSE benchmark fell 1,844.2 points or 2.32 percent, and the Nifty shed 573.25 points or 2.38 percent.
Reasons for market slide
“The sharp drop in the market is attributed to a number of factors, including sustained foreign fund outflows, lower expectations for quarterly earnings, continued weakness in the Indian rupee against the US dollar, and rising 10-year US bond yields.
Impact of crude oil prices and dollar index
Puneet Singhania, director, MasterTrust Group, said, “Furthermore, a strengthening dollar index and a sharp rise in crude oil prices add to inflationary concerns, further dampening investor sentiment. “
Increase in industrial production
India’s industrial production (IIP) growth rose to a six-month high of 5.2 percent year-on-year in November 2024, boosted by rising festive demand and a boom in the manufacturing sector, according to official data released on Friday. increased from
Outlook for next week
“Looking ahead, corporate earnings will be prominent, with major companies, including IT giants, releasing their Q3 results. Macroeconomic data, such as India’s inflation rate, will also play an important role in shaping market direction. will pay
Global indicators and their impact
“On the global front, updates on the US economy, particularly labor market data and inflation trends, could influence FII flows. A rise in crude oil prices will add to inflationary pressures. Overall Accordingly, market volatility is expected to remain as investors react to a mix of earnings, macroeconomic data, and global cues,” said Vinod Nair, Head of Research, Geojet Financial Services.
(with PTI input)