Market Next Week: Q1 results, global cues, FII flows to influence trading in equities: Analysts – what should investors do?

Several factors to drive the Indian markets next week, among those includes financial Q1 results, foreign fund movement, global cues and trends in the rupee, analysts estimate. Besides, global oil benchmark Brent crude movement would also influence trading in the market, they added.

"Market will react to HDFC Bank's numbers on Monday, while Ambuja Cement, HUL, IndusInd Bank and Wipro will be the other prominent names for Q1 earnings this week," Santosh Meena, Head of Research, Swastika Investmart Ltd said.

On the global front, the ECB (European Central Bank) and Bank of Japan's decision on the interest rates will be an important factor whereas the movement of the dollar index will remain a critical factor, Meena said.

"Market will also have an eye on commodity prices and behaviour of FIIs (Foreign Institutional Investors)," Meena added.

"In absence of any major event, we feel earnings and global cues will largely dictate the trend. We're seeing a tussle among the bulls and bears, not only in Indian markets but globally," Ajit Mishra, VP - Research, Religare Broking Ltd, said.

The 30-share BSE benchmark tanked 721.06 points or 1.32 per cent last week due to weak global trends, FII selling and concerns over high inflation.

Apurva Sheth, Head of Market Perspectives, Samco Securities, said, "As concerns of growing inflation and recession hang over the global economy, Indian benchmark indices are projected to remain uncertain in the near term. Further, with earnings season in full swing, market players should avoid reading too much into India Inc's numbers and instead focus on management commentary."

"As the result season gains momentum, more stock-specific action would be seen in the market. Going ahead, the market is likely to continue its range-bound movement as the tug of war continues between global and domestic cues," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

Hindustan Zinc, IDBI, JSW Energy, PVR, Reliance Industries are among the other firms to announce their earnings this week.

With the start of the April-June 2022 quarter result season, we can expect stock and sector-specific action over the next one month, Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, said.

Absence of any positive triggers is keeping traders on tenterhooks and long-term investors don’t want to jump in either because valuations haven't extremely attractive yet, Rahul Shah-Co-Head of Research at Equitymaster said. He added that the best strategy right now is to either have some cash on the side lines or keep buying fundamentally strong stocks in a phased manner.

With PTI Inputs