Market forecast. Quarterly earnings, inflation data major factors to drive trends in equity market this week: Analysts

PTI Updated - January 15, 2023 at 11:15 AM.

Global trends and Brent crude oil movement are also crucial factors to watch out for

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WPI inflation data, the ongoing quarterly earnings and foreign fund trading activity would largely dictate terms in the equity market this week, analysts said.

Global trends and Brent crude oil movement are also crucial factors to watch out for, they added.

"The Q3 season has begun with big IT names and this week we will react to earnings of some major names, including HDFC Bank, IndusInd Bank, Asian Paints, JSW Steel and HUL.

"On the global front, the US market will remain shut on Monday on account of Martin Luther King Jr Day. However, we will have lots of macro numbers from the US, Europe and China. Apart from this, movement in crude oil prices, US bond yields and the dollar index will be other important factors," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

HDFC Bank on Saturday reported a 19.9 per cent jump in its net profit to ₹12,698 crore for the third quarter ended December 2022, helped by a healthy rise in core income.

"Going ahead, earnings and global cues will largely dictate the trend. On the macroeconomic front, we have Wholesale Price Index (WPI) inflation data scheduled on January 16. On the earnings front, banking stocks will largely be in focus. First, markets will react to HDFC Bank's number. In the following sessions, participants will be eyeing IndusInd Bank, Kotak Bank and ICICI Bank results," said Ajit Mishra, VP-Technical Research, Religare Broking Ltd.

Last week, the 30-share BSE benchmark climbed 360.81 points or 0.60 per cent.

On the last week's trend, Meena said, selling by foreign institutional investors (FII), where they sold equities approximately ₹10,000 crore, markets, was the highlight of the week. FII fund inflow is a crucial variable in determining the market's future course, he added.

Other major earnings this week are from Federal Bank, Bank of India and Union Bank of India. "Going ahead, with IT earnings out of the way, investors will now focus on the earnings of financials," said Vinod Nair, Head of Research at Geojit Financial services.

Wipro Ltd on Friday posted a 2.8 per cent year-on-year rise in its consolidated net profit for the December quarter at about ₹3,053 crore. Shares of Wipro will also be in focus on Monday.

Published on January 15, 2023 05:45

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