Market Next Week: HUL, Asian Paints results, wholesale inflation data, macro data from developed economies among top cues for Street

Market Next Week: The Indian markets will primarily buzz on the third quarter earnings, which has already started from this week with IT giants such as TCS, Infosys, HCL Tech, and Wipro releasing their December quarter results, analysts said in their note, besides, global cues and foreign flows trend shall also influence indices.

They also expect factors such rupee and crude oil movement as well as wholesale price-based inflation (WPI) numbers are also likely to dictate the trend in the markets next week.

The Q3 season has begun with big IT names, and next week the market will react to the earnings of some major names, including HDFC Bank, Indusind Bank, HDFC Life, Asian Paints, JSW Steel, and HUL, Santosh Meena, Head of Research, Swastika Investmart Ltd said in his comment.

Also Read: Here's why foreign investors have dumped shares worth Rs 15,000 crore this month so far

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 USA, Europe, and China, Meena added.

Similarly, Ajit Mishra, VP - Technical Research, Religare Broking Ltd said, “Going ahead, earnings and global cues will largely dictate the trend. On the macroeconomic front, we have WPI Inflation data scheduled on January 16. On the earnings front, banking stocks will largely be in focus.”

He added, “First, markets will react to the HDFC Bank and Wipro’s number. In the following sessions, participants will be eyeing Indusind Bank, Kotak Bank and ICICI Bank results.

Besides, prominent names from other sectors like Hindustan Unilever, Asian Paints, Ultratech Cement and JSW Steel will also declare their results along with several others.”

In the USA, many major corporations will come out with quarterly earnings that may lead to volatility in the US markets, the analyst at Swastika Investmart said.

Apart from this, the movement in crude oil prices, US bond yields, and the dollar index will be other important factors, he pointed out, adding that we may see stock and sector-specific moves in pre-budget expectations.

The domestic market last week remained in the consolidation mood for yet another week and ended with modest gains. The beginning was upbeat, tracking favorable global cues however gains fizzled out in the following sessions citing mixed signals.

The benchmark indices, Nifty and Sensex, settled at 17,956.60 and 60,261.18 levels. Among the sectoral pack, IT, metal and auto posted strong gains while defensive viz. FMCG and pharma trade subdued. While the broader indices underperformed the benchmark and ended marginally lower.