Q2 earnings, global trends, trading activity of foreign investors to drive market movement: Analysts
While geopolitical concerns persist, they have had limited impact on the markets overall trajectory, Meena said, adding that the resilience of global markets will be crucial in determining the sustainability of this positive momentum.
The ongoing quarterly earnings report card of corporates, global trends and trading activity of foreign investors are key factors to drive the momentum in the equity markets this week, analysts said. Moreover, markets would also focus on global oil benchmark Brent crude and the rupee-dollar trend. "On the domestic front, the upcoming release of Q2 earnings report is expected to have a significant influence on market sentiment. If FIIs (Foreign Institutional Investors) shift to net buying, it could further propel the market's upward movement," Swastika Investment Ltd Head of Research Santosh Meena said.
While geopolitical concerns persist, they have had limited impact on the market's overall trajectory, Meena said, adding that the resilience of global markets will be crucial in determining the sustainability of this positive momentum.
From the macroeconomic front, the industrial production data is scheduled to be announced on Friday after market hours. "Global and domestic macroeconomic events, FII, DII (Domestic Institutional Investors) investment pattern, crude oil inventories, movement of the rupee against the dollar, US bond yield, the ongoing
Israel-Hamas conflict, the ongoing Q2 earning season will dictate the trend in the market this week," Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said.
Some major companies will be announcing their quarterly number in the coming days, such as HPCL, NHPC, IRCTC, Power Grid, Tata Power, Ashok Leyland, Coal India, Hindalco, LIC, Mahindra & Mahindra, Tata Chemicals, Nanda said. Last week, the BSE benchmark jumped 580.98 points, or 0.91 per cent, while the Nifty climbed 183.35 points, or 0.96 per cent.
The 30-share BSE Sensex climbed 282.88 points, or 0.44 per cent, to settle at 64,363.78 on Friday. The Nifty went up 97.35 points, or 0.51 per cent, to 19,230.60. "The optimism is buoyed by firm global clues, steady macroeconomic data and strong domestic corporate earnings. Clues that Fed is unlikely to hike rates in the future and modest decline in oil prices are adding to the optimism," Vinod Nair, Head of Research at Geojit Financial Services, said on Friday.
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