Markets in Holiday-shortened Week: Macro data, quarter results & global trends to guide markets, say analysts

Markets in Holiday-shortened Week: Equity markets will be driven by statistics on industrial production and inflation, quarterly profits from key technology companies, and global trends, during the holiday-shortened week, analysts predicted.

Furthermore, market terms will also be determined by foreign money trading activity, rupee fluctuations, and crude oil prices throughout the world, analysts said.

It should be noted that on Friday, April 14, the stock market will be closed in observance of 'Dr Baba Saheb Ambedkar Jayanti.'

"Leading IT companies TCS and Infosys will report their results this week. Due to concerns about a worldwide recession, markets will pay close attention to management commentary. US inflation and non-farm payroll figures will be important things to keep an eye on the global front. In addition to FIIs' actions, other crucial market-determining variables include the movement of crude oil prices, the dollar index, and US bond yields," Santosh Meena, Head of Research at Swastika Investmart Ltd, said.

TCS will announce its quarterly earnings on Wednesday, while Infosys on Thursday.

The stability on the global front has reduced some pressure, according to Ajit Mishra, VP of Technical Research at Religare Broking Ltd. The attention will now move to earnings for cues.

On Wednesday, macroeconomic data for industrial production for February and March's inflation rate are expected to be released, PTI said.

Also Read: TCS, Reliance, HDFC twins among top 10 most valued firms gain over Rs 82,000 crore in market capitalisation

WPI inflation data for March would be announced on Friday.

"Federal Open Market Committee (FOMC) meeting minutes are to be announced this week, which can have an impressive effect on the global market. Investors are looking for signs of a future FED interest rate pause, which can have a positive impact on the global market, else vice versa," Vinod Nair, Head of Research at Geojit Financial Services, said.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that FPI investment is showing a positive trend.

FPIs were continuous buyers during the last six trading days having invested Rs 4,738 crores. The basic reason for the change in FPI stance is the declining dollar index and falling bond yields in the US, said PTI.

Also, the rupee has been appreciating in recent days from around Rs 82.75 to 81.74 now. This trend is likely to gather momentum. FPIs have turned buyers in automobiles, financial services, capital goods, power and metals and mining. They have been selling in IT.

Equity markets were closed on Tuesday (April 4) for "Mahavir Jayanti", and on Friday (April 7), on account of "Good Friday".

The 30-share BSE benchmark climbed 841.45 points or 1.42 per cent in the holiday-shortened week.

(With PTI inputs)