Global factors, macro data, Q4 results among others to drive market trends next week, analysts estimate

The volatility in the market is likely to continue amid a slew of macro data announcements, besides, factors such as global markets trend, inflation, the release of industrial output data, and quarterly earnings will dictate the movement of the Indian equity benchmarks next week, analysts expected.

Moreover, other factors such as foreign fund movement, crude oil prices, and trend in rupee also likely to act as major drivers for the equity market, they added.

“In the coming week, participants will first react to the Reliance numbers which were announced post-market on Friday. Besides, developments on the Russia-Ukraine front and the performance of global markets will be on the radar.” Ajit Mishra, VP Research, Religare Broking said in a note.

On the macroeconomic front, IIP and CPI Inflation data are scheduled for May 12 and the market will be eyeing these numbers, to gauge the next possible move from the RBI in the June meeting, the market analyst also said in its weekly note.

On the earnings front, Mishra mentioned several prominent names like Asian paints, LT, Cipla, Tata Motors, SBI, and Siemens will announce their numbers along with several others.

Markets are reeling under tremendous pressure and indications are in the favour of further decline ahead, Mishra said, citing that the Nifty has the next major support at 16,000 levels and the 16,650-16,800 zone would act as a hurdle in case of any rebound.

The VP - Research at Religare Broking recommended to focus more on overnight risk management and maintaining position on both sides since global cues are largely dictating the trend.

"The direction of global equity markets along with movement in dollar index and crude oil prices will continue to dominate while inflation numbers of the USA on May 11 and inflation and IIP numbers of India on May 12 will also cause volatility in the market," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Meena said the last batch of fourth-quarter earnings will have a stock-specific movement with SBI, Tata Motors, L&T, UPL, Tech Mahindra and Cipla are among the key results slated to be announced.

This week, market will track inflation numbers across the globe, said Vinod Nair, Head of Research at Geojit Financial Services.

Yesha Shah, Head of Equity Research, Samco Securities, said, "Given a slew of macroeconomic releases, the current result season and several IPOs that will open for subscription, volatility seen last week is expected to persist. Global market movements will be determined by inflation numbers of the United States and China.

"Data on India's industrial output, domestic inflation rates and manufacturing output will keep Indian markets on edge."

Last week, the Sensex slumped 2,225.29 points or 3.89 per cent, while the Nifty lost 691.30 points or 4.04 per cent.

Dalal Street wilted under intense selling pressure on Friday, mirroring a meltdown in world equities as investors braced for slowing global growth amid policy tightening by central banks.

The 30-share BSE Sensex dived 866.65 points or 1.56 per cent to finish at 54,835.58 on Friday. Similarly, the broader NSE Nifty tumbled 271.40 points or 1.63 per cent to settle at 16,411.25.

With PTI Inputs