Q1 Earnings Reports and Global Data Shape Market Sentiments

The upcoming week's market movement will be driven by quarterly earnings from prominent firms such as Infosys and Reliance Industries, global trends, and trading activity by foreign investors. Additionally, domestic WPI inflation data and pre-Budget discussions are expected to influence market sentiments. Key global data include China's GDP and US retail sales figures.

The upcoming week is set to be pivotal for equity markets, with several blue-chip firms, including Infosys and Reliance Industries, releasing their quarterly earnings reports. Analysts highlight that global trends and foreign investor trading activities will significantly drive market movement.

Scheduled for release on Monday, the domestic WPI inflation data for June will also impact trading sentiments. Markets will remain closed on Wednesday in observance of Muharram. Key quarterly earnings to be monitored this week include HDFC Life Insurance Company, Bajaj Auto, BPCL, JSW Steel, Asian Paints, Infosys, and Reliance Industries.

Santosh Meena, Head of Research at Swastika Investmart Ltd, noted that Q1 earnings from major companies will be a focal point. Additionally, pre-Budget discussions are likely to add to market volatility. On the global stage, China's GDP and Industrial Production (IIP) figures are eagerly awaited.

Analysts also pointed to the importance of US Federal Reserve Chairman's speech, US retail sales data, and macroeconomic statistics from Japan. IT services company HCL Tech reported a significant rise in consolidated net profit for the June-ended quarter, and provided revenue growth guidance for FY25 based on diversified GenAI and strong operations.

According to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd, domestic markets will react to India's inflation data. Additionally, investors will keep a close watch on Jio Financial Services, HDFC Life, Asian Paints, LTIMindtree, Infosys, Wipro, JSW Steel, and Paytm, among others. Globally, China's GDP figures, US core retail sales data, and the ECB's interest rate decisions will offer crucial market cues.

Retail inflation in June rose to a four-month high of 5.08 per cent due to increased prices of food items. Vinod Nair, Head of Research at Geojit Financial Services, expects stock-specific movements to gain traction with IT companies remaining in focus due to a strong earnings start.

The overall market performance saw the BSE benchmark climb by 522.74 points, or 0.65 per cent, and the NSE Nifty rise by 178.3 points, or 0.73 per cent. The 30-share BSE Sensex achieved a record closing level, and the NSE Nifty similarly set new lifetime peaks.

(With inputs from agencies.)