TCS, Infosys Q2 results, FOMC minutes among major triggers for market next week

Riding a two-day winning streak, the Indian market ended slightly lower amid volatility on Friday. The benchmark Nifty50 and Sensex declined between 0.5% and 0.10% during the holiday-shortened week. The former fell 0.10% to end at 17,314.65 and the latter ended marginally lower by 0.05% or 30.81 points to settle at 58,191.29 in the week ended 7 October 2022. However, the market gained about one percent weekly. The broader market closed on a mixed note with Nifty midcap falling 0.24% and small cap gaining the same percent.

Sectorally, private banking, real estate, media and consumer durables gained the most, while the rest of the indexes finished in the red.

“Ahead of the US jobs data release, the domestic market traded lower in line with its global counterparts. Stronger-than-expected jobs data may cause the market to fall, already which could give the Fed more reason to focus on inflation,” said Vinod Nair, head of research at Geojit Financial Services.

“Following the announcement of supply cuts by OPEC+, crude oil prices have continued to rise, while the rupee has fallen to a new low as a result of dovish remarks by Fed officials” , added.

Meanwhile, analysts believe that IT giants’ Q2 results, global trends, rupee movement and macro data will be the main triggers for the coming week.

“This week, participants will be looking at important macroeconomic data like IIP, CPI and WPI… In addition, the week also marks the start of the earnings season with IT majors like TCS, Infosys, HCL Tech and Wipro announcing their numbers along with two other heavyweights Bajaj Auto and HDFC Bank,” said Ajit Mishra, vice-president, research, Religare Broking Ltd.

Apart from these factors, performance of US markets, trend of FIIs and movement of currency and crude oil will also remain on his radar, he added.

This week will be a rollercoaster as a number of important events line up, including the quarterly results of IT companies, said Apurva Sheth, Head of Market Outlook at Samco Securities.

“Markets around the world will be dominated by the FOMC (Federal Open Market Committee) minutes to be released this week. While global investors will be closely watching inflation numbers in the United States and China, the impression of ‘India’s CPI will be a key national factor to monitor,’ he noted.

The market will focus on quarterly earnings this week, especially for IT stocks, Nair said. “Furthermore, domestic market movement would be significantly affected by the inflation data expected to be released this week,” Nair added.

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