TCS, Infosys Q2 results, FOMC minutes among major triggers for market next week

Snapping a two-day winning streak, the Indian market ended marginally lower amid volatility on Friday. Benchmarks Nifty50 and Sensex declined by 0.5-0.10% in the holiday shortened week. The former dropped by 0.10% to end at 17,314.65 and the latter ended marginally lower by 0.05% or 30.81 points to settle at 58,191.29 in the week ended October 7, 2022. However, the market gained around one per cent on the weekly basis. The broader market closed on a mixed note with Nifty midcap declining by 0.24% and the smallcap gaining by the same per cent.  

Sectorally, Private Bank, Realty, Media and Consumer Durables gained the most, while all other indices ended in the red.   

"Prior to the release of the US jobs data, the domestic market traded with cuts in line with its global counterparts. Stronger-than-anticipated job data may lead to a market decline as it could give the Fed more reasons to focus on inflation," said Vinod Nair, Head of Research at Geojit Financial Services.  

"Following OPEC+'s announcement of supply reductions, crude prices have continued to rise, while the rupee has dropped to a fresh low as a result of hawkish remarks from Fed officials," he added.  

Meanwhile, analysts believe that Q2 results of IT giants, global trends, movement of rupee and macro data will be major triggers for the next week.    

"This week, participants will be eyeing important macroeconomic data viz IIP, CPI and WPI... Besides, the week also marks the beginning of the earnings season with IT majors like TCS, Infosys, HCL Tech and Wipro announcing their numbers along with two other heavyweights Bajaj Auto and HDFC Bank," said Ajit Mishra, VP - Research, Religare Broking Ltd. 

Apart from these factors, performance of the US markets, FIIs' trend, and movement in currency and crude will also remain on their radar, he added. 

This week will be a roller-coaster ride as a series of important events are lined up, including IT companies quarterly results, said Apurva Sheth, Head of Market Perspectives, Samco Securities.

"Markets across the globe will be dominated by the FOMC (Federal Open Market Committee) minutes that will be released this week. While global investors will be keenly monitoring inflation figures in the United States and China, Indian CPI print will be a key domestic factor to monitor," he noted. 

The market's will focus on quarterly earnings this week, particularly for IT stocks, said Nair. "Additionally, domestic market's movement would be significantly affected by inflation data that is anticipated for release this week," added Nair.