Quarterly earnings and global trends to influence equity market movement

As the results season kicks in, the quarterly earnings numbers of several blue-chip firms—such as Infosys and Reliance Industries—along with global trends and trading activity of foreign investors, will determine equity market movement in the holiday-shortened week ahead, according to analysts.

The domestic WPI inflation data for June—scheduled to be announced on Monday—will also influence trading sentiments, traders said.

Markets will remain closed on Wednesday for Muharram.

Among major quarterly earnings to be tracked this week are those from HDFC Life Insurance Company, Bajaj Auto, BPCL, JSW Steel, Asian Paints, Infosys, and Reliance Industries.

"Q1 earnings will be a key focus this week as numerous companies, including heavyweights Infosys and Reliance, are set to release their results. Additionally, pre-Budget discussions are expected to contribute to market volatility," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

On the global front, significant focus will be on China. The country is scheduled to announce its GDP and Industrial Production (IIP) numbers, Meena added.

"Other global factors to watch include the speech by the US Federal Reserve Chairman, US retail sales figures, and macroeconomic data from Japan," he said.

Meanwhile, IT services company HCL Tech on Friday posted a 20.4 per cent rise in consolidated net profit to Rs 4,257 crore for the June-ended quarter and gave a revenue growth guidance of 3-5 per cent for FY25 on GenAI diversification and strong operational execution.

"On Monday, markets will react to India's inflation data. Key results this week include Jio Financial Services, HDFC Life, Asian Paints, LTIMindtree, Infosys, Wipro, JSW Steel, and Paytm. Also globally, investors will take cues from China's GDP numbers, US core retail sales data, and the ECB (European Central Bank) interest rate decision," said Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services Ltd.

Retail inflation increased to a four-month high of 5.08 per cent in June as food items, including vegetables, became dearer, according to government data released on Friday.

Vinod Nair, Head of Research, Geojit Financial Services, said, "We expect stock-specific moves to gain traction due to the ongoing earnings season; indeed, IT will be in the limelight due to the good start to the earnings and outlook." In the week ahead, economic data like China GDP, EuroZone CPI inflation, ECB policy, and the US Fed chair speech will be watched by investors to get cues on market momentum, Nair added.

On a weekly basis, the BSE benchmark jumped 522.74 points, or 0.65 per cent, while the Nifty climbed 178.3 points, or 0.73 per cent.

The 30-share BSE Sensex jumped 622 points, or 0.78 per cent, to settle at a record closing level of 80,519.34 on Friday.

During the day, it zoomed 996.17 points, or 1.24 per cent, to hit an all-time high of 80,893.51.

The NSE Nifty surged 186.20 points, or 0.77 per cent, to settle at a record closing high of 24,502.15. Intra-day, it jumped 276.25 points, or 1.13 per cent, to hit a new lifetime peak of 24,592.20.