by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : Macro-economic data points combined with the direction of foreign fund flows and the rupee’s movement against the US dollar are expected to influence the Indian equity market next week, analysts opined.
The ongoing quarterly results season, along with crude oil price fluctuations, will also impact investors’ risk-taking appetite.
“Market will closely watch the macroeconomic data, which are scheduled to release next week, crude oil prices, rupee movement and inflow or outflow of the funds by foreign and domestic investors,” SMC Investments and Advisors Chairman and Managing Director, D.K. Aggarwal told IANS.
Vinod Nair, Geojit Financial Services Head of Research: “A fall in interest rates and improving outlook for consumption oriented sectors after interim budget will provide support to the market.”
“On the global front, pessimism over growth and trade disputes may lead to volatility.”
The Central Statistics Office (CSO) is slated to release the macro-economic data points of Index of Industrial Production (IIP), Consumer Price Index (CPI) on February 12.
Besides, investors will look forward to the macro-economic data points of WPI (Wholesale Price Index) and India’s trade figures.
“Next week government will unveil CPI inflation and IIP date which will be keenly watched by the investors,” Nair added.
Apart from the macro-data economic data points, the week ahead will be heavily influenced by Q3 corporate earnings.
Companies like Eicher Motors, India Cements, Motherson Sumi Systems, SpiceJet, Coal India, Hindalco Industries, Indian Hotels, Bharat Forge, Fortis Healthcare, GMR Infra, ONGC and Voltas are expected to announce their quarterly results in the coming week.
In addition, direction of foreign fund flows will become other major sentiment driver.
The week ended on February 8 also witnessed an inflow of foreign funds as FIIs were net buyers to the tune of over Rs 2,265 crore, provisional data on the BSE showed.
On technical charts, the National Stock Exchange (NSE) Nifty50 broke-out of a two month trading range last week.
“Technically, the break-out was not followed up by follow-through up-move but sell-off at the end of the week. This made the breakout look less convincing as the Nifty has closed well below the highs of the week,” HDFC Securities’ Retail Research Head Deepak Jasani told IANS.
“We expect the Nifty to continue to trade in a range between the 10,852-11,082 levels for the coming week.”
Last week, both the key Indian equity indices — S&P Bombay Stock Exchange (BSE) Sensex and the NSE Nifty50 — rose on the back of Reserve Bank of India’s rate cut along with healthy foreign fund inflows.
Consequently, the S&P BSE Sensex rose 289.79 points, 0.8 per cent, over the week to end at 36,546.48 points.
The broader NSE Nifty50 finished at 10,943.60, up 1 per cent or 112.65 points from its previous week’s close.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
By Rohit Vaid,
Mumbai : The upcoming quarterly results season, along with the release of macro-economic industrial production data and global developments on trade protectionist measures, are expected to determine the trajectory of key equity indices next week.
Market observers opined that other global cues such as crude oil prices, combined with the direction of foreign fund flows and the rupee’s movement against the US dollar, will also have a bearing on the risk-taking appetite of investors.
“Investors have turned cautious ahead of corporate earnings season beginning next week, with TCS and Infosys reporting December quarter results in the first round. Going forward, the market is expected to continue its volatile trade,” SMC Investments & Advisors CMD D.K. Aggarwal said.
“Besides, developments in the Winter Session of Parliament, the movement of rupee against the dollar and crude oil price movement will further give direction to the
market.” (The Winter Session will run for just two more days on Monday and Tuesday.)
The Q3 earnings result season will kick-off from next week. IT major TCS is expected to be the first bluechip firm to come out with its Q3 result on January 10 (Thursday).
“The ongoing volatility may continue in the near-term, due to premium valuation, slowdown in the domestic economy, muted earnings growth in the next two quarters and cascading effect of liquidity crunch in the urban and rural markets,” Geojit Financial Services Head of Research Vinod Nair said.
“Additionally, the short-term effect of the national election (in the next few months), with risk of populist measures and the global effect of current uncertainties may add to the near term volatility. Markets will look forward to US-China trade talks and Q3 results season starting next week.”
Apart from TCS, companies like Infosys, Bajaj Corp and IndusInd Bank are expected to announce their quarterly results in the coming week.
Besides Q3 results, investors will look out for the upcoming macro-economic data points such as the IIP (Index of Industrial Production).
The Central Statistics Office (CSO) is slated to release the macro-economic data points of IIP and CPI on January 11 (Friday).
On the currency front, the rupee is expected to be volatile as crude and bond yields indicate pressure on the local currency said Sajal Gupta, Edelweiss Securities’ Head of Forex and Rates.
“Liquidity expansion in China can also put pressure on Asian currencies in the near future.. and global slowdown worries are not moving away….”
The local currency strengthened during the week ended January 4. It gained 43 paise to 69.72 against the US dollar from its previous week’s close of 70.15.
Another key theme for next week will be the direction of foreign fund flows. On a weekly basis, provisional figures from the stock exchanges showed that FIIs sold stocks worth over Rs 2,000 crore in the week just-ended.
On technical levels, the underlying trend of the National Stock Exchange’s Nifty50 has turned flat.
“Technically, with the moving average and momentum readings turning flat and the Nifty stuck in a range, markets could continue to remain choppy and range-bound in the coming week,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
“The Nifty could broadly trade between the 10,534-10,924 points levels in the coming week.”
Last week, Indian equity market ended lower as concerns over a global slowdown and weak domestic core industrial production data dented investors sentiments.
Consequently, the 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange edged lower by 381.62 points, or 1.05 per cent, to close at 35,695.10 points.
Similarly, the Nifty50 of the NSE declined. It went down by 132.55 points, or 1.22 per cent, to settle at 10,727.35 points.
(Rohit Vaid can be contacted at rohit.v@ians.in )
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : The upcoming quarterly results season, along with the release of macro-economic data points on industrial production and inflation, are expected to determine the trajectory of key equity indices next week.
According to market observers, global cues such as crude oil prices, combined with the direction of foreign fund flows and the rupee’s movement against the US dollar, will also impact investors’ risk-taking appetite.
“Earnings season for Q3 (third quarter) with IndusInd Bank and TCS (Tata Consultancy Services) release would be closely watched, as the same have to catch up with the recent PE (price-to-earnings) expansion,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
“The CPI (Consumer Price Index) data out on Friday would be closely watched. If much above 5 per cent, this would dampen the sentiment in the markets, especially for the banking and NBFC sectors given the fact that the GDP (2017-18) provisional estimates were already lower.”
The Q3 earnings result season will be kicked-off from next week. IT major TCS is expected to be the first bluechip firm to come out with its Q3 result on January 11, (Thursday).
“The market is trading at premium valuation supported by strong liquidity on expectation of earnings revival and positive global cues. In recent times, higher oil prices, rising inflation and the RBI’s hawkish stance are warning signs for the market,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Further, the market is wary of a populist budget given this is the last (full) one before the general election. In the immediate future, the market will look for more budget-related cues and progress of the Q3 results season.”
Apart from TCS, companies like Infosys, Gail, Bajaj Corp, IndusInd Bank and Shree Cement are expected to announce their quarterly results in the coming week.
“It is expected that December quarter earnings would positively surprise the street in select companies,” said D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors.
“Besides, global cues, macro-economic data, investment by foreign and domestic institutional investors (FIIs ad DIIs), the movement of rupee against the dollar and crude oil price movement will dictate the trend of the market in the week ahead.”
Apart from the Q3 results, investors will look out for the upcoming macro-economic data points such as the IIP (Index of Industrial Production) and Balance of Trade figures.
The Central Statistics Office (CSO) is slated to release the macro-economic data points of IIP and CPI on January 12, Thursday.
On the currency front, the rupee had strengthened by 50 paise to close at 63.37 against the US dollar during the week ended on January 5.
Investment-wise, provisional figures from the stock exchanges showed that FIIs turned net buyers and purchased scrips worth Rs 1,738.44 crore.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors invested in equities worth Rs 1,618.27 crore, or $254.14 million, from January 1-5.
On technical levels, the underlying trend of the National Stock Exchange’s (NSE) Nifty50 remains bullish.
“Further upsides are likely once the immediate resistances of 10,566 points are taken out. Weakness could emerge if the supports of 10,520 points are broken,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
Last week, the key Indian equity indices — the BSE Sensex and the NSE Nifty50 — rose for the fifth consecutive week.
Consequently, the 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange closed higher by 97.02 points or 0.28 per cent at 34,153.85 points.
Similarly, the Nifty50 of the NSE rose by 28.15 points or 0.26 per cent to 10,558.85 points.
(Rohit Vaid can be contacted at rohit.v@ians.in )
—IANS
By Rohit Vaid,