Market next week: Auto sales, last leg of Q4 results, global cues, and other key factors for Dalal Street

As the market enters the last leg of Q4 results for the financial year 2022-23, Indian equities shall mainly be influenced by auto sales, global cues, economy and manufacturing data and other triggers, several analysts estimated for the next week between May 29 – June 2, 2023.

Besides, other factors such as foreign investors flow, the rupee movement against the US dollar, crude oil trend may also the domestic benchmark indices in the coming week.

“The coming week marks the beginning of the new month also so participants will be eyeing high-frequency data viz. auto sales, manufacturing PMI and services PMI data. Before that, the GDP data, scheduled on May 31, will also be on their radar,” Ajit Mishra, VP Research, Religare Broking said.

Apart from these factors, the analysts at Religare Broking said that the performance of the US markets amid the ongoing debt ceiling talks will also be in focus.

“As we are entering into the last leg of the earnings season, we have companies like Aurobindo Pharma, Apollo Hospitals, Adani Ports, IRCTC and PFC, who will be announcing their numbers during the week,” the market expert said pointing the key results scheduled for next week.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services also said that the focus will now shift to macro data, US debt negotiations and upcoming central bank policy meetings with result season nearing its end.

The analyst at Motilal Oswal expects the current momentum to continue and Nifty to touch its previous lifetime high in the coming weeks. The index is now just 380 points or 2 per cent away from its lifetime high, he added.

Similarly, Santosh Meena, Head of Research, Swastika Investmart said, “The attention will be directed towards key macroeconomic data, including GDP figures, fiscal deficit updates, and monthly auto sales numbers.”

He added, “It is also essential to keep an eye on the rupee's performance, as the technical structure of USDINR suggests a potential depreciation. A sharp decline in the rupee could potentially pause the current bullish momentum in the near term.”

The Indian markets ended a 2-week long consolidation phase and gained over one and a half percent. The benchmark indices remained range bound in the middle, tracking mixed global cues however strong recovery in the final sessions changed the tone.

The Nifty50 managed to surpass the hurdle at 18,400 and settled around the week’s high at 18,499.30 levels. All sectors contributed to the move wherein metal, pharma and IT were the top gainers. The buoyancy continued the broader front, with the midcap index scaling to a new high.