Q1 results, global cues to drive market sentiment
Financial results, foreign fund movement, global cues and trends in the rupee are the major factors that will drive the equity markets this week, analysts said.
Besides, international oil benchmark Brent crude movement would also influence trading in the market, they added.
“Market will react to HDFC Bank’s numbers on Monday, while Ambuja Cement, HUL, IndusInd Bank and Wipro will be the other prominent names for Q1 earnings this week,” Santosh Meena, Head of Research, Swastika Investmart Ltd said.
On the global front, the ECB (European Central Bank) and Bank of Japan’s decision on the interest rates will be an important factor whereas the movement of the dollar index will remain a critical factor, Meena said.
“Market will also have an eye on commodity prices and behaviour of FIIs (Foreign Institutional Investors),” Meena
added.
HDFC Bank on Saturday reported a 20.91% jump in its June quarter net profit at ₹9,579.11 crore on the back of overall growth. On a standalone basis, its net profit increased to ₹9,195.99 crore from ₹7,729.64 crore in the year-ago period, but was down from ₹10,055.18 crore in the preceding March quarter.
“In absence of any major event, we feel earnings and global cues will largely dictate the trend. We’re seeing a tussle among the bulls and bears, not only in Indian markets but globally,” Ajit Mishra, VP Research, Religare Broking Ltd, said.
The 30-share BSE benchmark tanked 721.06 points or 1.32% last week due to weak global trends, FII selling and concerns over high inflation.
Apurva Sheth, Head of Market Perspectives, Samco Securities, said, “As concerns of growing inflation and recession hang over the global economy, Indian benchmark indices are projected to remain uncertain in the near term. Further, with earnings season in full swing, market players should avoid reading too much into India Inc’s numbers and instead focus on management commentary. With the start of the April-June 2022 quarter result season, we can expect stock and sector-specific action over the next one month, Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, said.