Budget, corporate earnings, global trends to drive Indian markets next week

The upcoming week will be eventful for the Indian markets as the outcome of the Union Budget, quarterly earnings from corporates, and global trends shall drive the stock market sentiments.

Besides, the trading activity of foreign investors, the rupee-dollar trend and the movement of global oil benchmark Brent crude are also crucial aspects to watch out for as per analysts.

"The upcoming Union Budget on July 23, 2024, has become the next focal point for the market, with high expectations for growth-oriented policies. Several factors will influence the market direction, including Q1 FY25 earnings, domestic and global economic data, and broader global market trends.

"Market sentiment will be closely monitored by observing foreign and domestic institutional investor activity (FII and DII) and crude oil prices," said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

Among blue-chip firms Bajaj Finance, Hindustan Unilever, Axis Bank, Bajaj Finserv, Larsen & Toubro, DLF, Tech Mahindra and Nestle will announce their earnings during the week.

"The market direction will be determined by the upcoming Budget outcome," Vinod Nair, Head of Research, Geojit Financial Services, said.

The Union Budget will provide the next set of directions to the market, Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said.

"Earnings season will also pick up pace, which will result in stock-specific actions," he added.

HDFC Bank will remain in focus on Monday after the company's consolidated net profit grew 33.17 per cent to Rs 16,474.85 crore in the June 2024 quarter.

Global market outlook 

In the upcoming week, significant economic data releases could influence market dynamics, starting with the US Q2 Gross Domestic Product (GDP) growth rate on Thursday, July 25.

"A strong GDP reading could delay anticipated rate cuts by the Fed. On Friday, July 26, the US Core PCE Inflation data will be released. These figures are critical for the Fed’s policy decisions. Stay ahead of the game by closely monitoring these events and adjusting your strategies accordingly," said Alex Volkov, Market Analyst at VT Markets.

Last week, the BSE benchmark climbed 85.31 points or 0.10 per cent, and the Nifty went up marginally by 28.75 points or 0.11 per cent.

The 30-share BSE Sensex hit its new all-time high of 81,587.76 on Friday, and the NSE Nifty too reached its fresh record peak of 24,854.80 on the same day.

(With input from agencies.)

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