July 15th 2024.
As we enter the season of quarterly results, analysts predict that the performance of top companies like Infosys and Reliance Industries, along with global market trends and foreign investor activity, will have a significant impact on the equity market in the upcoming week. Traders also anticipate that the domestic Wholesale Price Index inflation data for June, which is set to be announced on Monday, will play a crucial role in shaping market sentiments.
It is worth noting that the markets will remain closed on Wednesday due to the Muharram holiday. However, investors will have their eyes on the earnings reports of major companies such as HDFC Life Insurance Company, Bajaj Auto, BPCL, JSW Steel, Asian Paints, Infosys, and Reliance Industries, which are scheduled to be released this week. Santosh Meena, the Head of Research at Swastika Investmart Ltd, believes that the first-quarter earnings will be a significant focus as many heavyweight companies are expected to announce their results. He also points out that discussions about the upcoming budget may add to the market's volatility.
Looking at the global market, China will be in the spotlight as it is set to announce its GDP and Industrial Production numbers. According to Meena, other factors that investors should keep an eye on include the speech by the US Federal Reserve Chairman, retail sales data from the US, and macroeconomic data from Japan.
On Friday, HCL Tech reported a 20.4% increase in its consolidated net profit for the first quarter, along with a revenue growth guidance of 3-5% for the fiscal year 2025. This news, combined with the company's diversification into GenAI and strong operational execution, has boosted investor confidence.
Siddhartha Khemka, the Head of Retail Research at Motilal Oswal Financial Services Ltd, believes that the market will react to India's inflation data on Monday. He also highlights the importance of upcoming earnings reports from companies like Jio Financial Services, HDFC Life, Asian Paints, LTIMindtree, Infosys, Wipro, JSW Steel, and Paytm. Globally, investors will be closely watching China's GDP numbers, US core retail sales, and the ECB's interest rate decision.
According to government data released on Friday, retail inflation in India rose to a four-month high of 5.08% in June, mainly due to the increase in food prices, including vegetables. Vinod Nair, the Head of Research at Geojit Financial Services, predicts that the ongoing earnings season will lead to stock-specific movements, with a particular focus on the IT sector, which has shown a promising start to the earnings and outlook.
In the coming week, investors will be keeping an eye on economic data such as China's GDP, EuroZone CPI inflation, ECB policy, and the US Fed chair's speech to gauge the market's momentum. On a weekly basis, the BSE benchmark rose by 522.74 points, or 0.65%, while the Nifty climbed by 178.3 points, or 0.73%. On Friday, the 30-share BSE Sensex closed at a record high of 80,519.34, jumping by 622 points, or 0.78%. It also hit an all-time high of 80,893.51 during the day. The NSE Nifty also surged, closing at a record high of 24,502.15, with an increase of 186.20 points, or 0.77%. Intra-day, it reached a new lifetime peak of 24,592.20, jumping by 276.25 points, or 1.13%.
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