Market Outlook this week: The direction of Indian stock markets will be decided this week by the quarterly results of companies, inflation data and activities of foreign investors. Analysts have expressed this opinion. During this period, December quarter results of big companies like Infosys and Reliance Industries are to be announced. Apart from this, investors will also keep an eye on the prices of crude oil and the movement of rupee against the dollar.Last week, investor sentiment was affected by the strengthening of the US dollar and rising US bond yields.
Investors will keep an eye on them
This week, big companies like Infosys, Reliance Industries, HCL Technologies, HDFC AMC, HDFC Life Insurance Company and Axis Bank will announce their December quarter results. Investors are eagerly waiting for the third quarter results of big companies. Apart from this, Consumer Price Index (CPI) based inflation data is to be released on Monday and Wholesale Price Index (WPI) based inflation data is to be released on Tuesday.
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What do experts say
Pravesh Gaur, senior technical analyst at Swastika Investmart, said that this week will be full of ups and downs for the Indian stock markets. He said that the ‘struggle’ between foreign institutional investors (FIIs) and domestic institutional investors (DIIs) is going on in the local market.
Siddharth Khemka, Research Head (Wealth Management), Motilal Oswal Financial Services, said that Consumer Price Index (CPI) based inflation data will come on Monday, which is very important for the market. Wholesale Price Index (WPI) based inflation data will be released on Tuesday.
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Last week, the 30-share BSE Sensex fell 1,844.2 points or 2.32 percent. Whereas the National Stock Exchange’s Nifty lost 573.25 points or 2.38 percent. Master Trust Group Director Puneet Singhania said that the sharp decline in the market has happened due to many reasons.This includes factors like withdrawal of foreign funds, weaker than expected third quarter results of companies, continuous fall of rupee against the dollar and increase in 10-year bond yield in America.Apart from this, the strength in the dollar index and the sharp rise in crude oil prices have increased concerns about inflation, which has further affected investor sentiment.
According to official data released on Friday, the growth rate of industrial production (IIP) increased to a six-month high of 5.2 percent on an annual basis in November 2024.Vinod Nair, Research Head, Geojit Financial Services said that everyone will keep an eye on the third quarter results of the companies.During the week, December quarter results of other IT sector giants are coming. Besides, macroeconomic data like inflation will also play an important role in giving direction to the market.Nair said that on the global front, the US economy, especially the labor market data and inflation trend, could affect the inflow of foreign institutional investors (FIIs).
