Market Outlook: What to expect in 2nd week of 2023? Q3 results, macro data among other factors may keep investors busy

Market Outlook, Market Next Week: The second week of 2023 is likely to be buzziest with the beginning of the earnings season, followed by macroeconomics data like consumer price-based inflation (CPI) and Index of Industrial Production (IIP) shall also be released in the coming week, several analysts said in their market outlook.

Other triggers such as global trends, foreign investors' fund flow, rupee, and crude oil movement will also influence the Indian markets in the coming week, analysts expect in their comments.

“The coming week will mark the beginning of the earnings season and the IT majors viz. TCS, Infosys, HCL Tech, and Wipro will announce their numbers during the week. Besides, banking heavyweight, HDFC Bank, will also declare its result along with several others,” Ajit Mishra, VP - Technical Research, Religare Broking said in his comment in the market outlook for the next week.

On the macroeconomic front, IIP and CPI Inflation will be unveiled on January 12, 2023, the analyst at Religare Broking said, adding that the performance of the global markets will remain on the participants’ radar apart from the domestic factors.

On the global front, the market participants will keenly watch the inflation numbers of the US and China, Apurva Sheth, Head of Market Perspectives, Samco Securities said in his outlook for the next week. “With the Fed still maintaining its hawkish tone, the US inflation numbers will be highly significant.”

In line with Mishra’s expectations, Sheth also believes IT Q3 results will keep markets busy. However, he added, “The attrition rates of IT companies will be closely looked out after they reached the peaks in the previous quarter.”

According to the analyst at Samco Securities, “ The stock-specific movements will be prominent and as investors react to earnings misses and beats, they are advised to assess the company's long-term potential rather than  basing their investment decisions solely on quarterly performance.”

Stating that the volatility would remain high across sectors with the beginning of the earnings season, the Religare Broking analyst recommends market participants prefer a hedged approach and avoid overtrading.

Domestic markets have resumed the corrective trend after a marginal breather and a decisive break below 17,800 in Nifty and 41,500 in the banking index would further add to the pressure, Mishra said, adding that the 17,450 zones would act as crucial support for Nifty on the downside.

The equity markets started the first week of the calendar year on a subdued note and lost nearly a percent and a half, tracking feeble global cues. The tone was positive in the beginning but selling pressure in the last three sessions pushed the bulls on the back foot.

Consequently, the benchmark indices, Nifty and Sensex, settled closer to the week’s low to close at 17,859.45 and 59900.37 levels. Most of the sectoral indices traded in tandem with the benchmark index wherein banking, financials and IT were among the top losers.