August 12th 2024.
In the upcoming shortened week, analysts predict that the equity market will be heavily influenced by a number of factors. These include the release of macroeconomic data, the final round of Q1 earnings reports, and global trends. The market will also be closed on Thursday in honor of Independence Day.
According to Pravesh Gour, a Senior Technical Analyst at Swastika Investmart Ltd, the global markets will be the main focus this week. This is due to the recent increase in instability after a period of relative calm. Gour also believes that the Indian equity market may experience some stabilization as investors process recent gains and adjust to high prices. Additionally, the rising geopolitical tensions have not had a significant impact on the markets, as evidenced by the decline in crude oil prices.
Looking at the domestic front, Gour notes that the last round of Q1 earnings will have a major impact on the movement of individual stocks. Some notable companies, such as Hero MotoCorp and Hindalco, will be releasing their earnings reports this week. Gour also emphasizes the role that institutional flows will play in the market dynamics.
Other companies, including Vodafone Idea, NMDC, IRCTC, SJVN, and PC Jeweller, will also be announcing their quarterly earnings this week. On the macroeconomic front, data on industrial production for June and inflation rate for July will be released on Monday. On Wednesday, the WPI inflation data will also be announced.
Vinod Nair, the Head of Research at Geojit Financial Services, points out that Indian inflation data is also expected to be released this week. He predicts that the direction of the domestic market will largely depend on the performance of the global markets.
Last week, the BSE benchmark and Nifty experienced significant declines of 1.57% and 1.41%, respectively. This was largely due to the unwinding of the yen carry trade and concerns about a potential recession in the US. These global factors had a major impact on stock markets around the world.
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