Analysts said trading activity in the domestic equity market this week would be affected by macroeconomic data announcements, including inflation numbers for June, Q1 earnings from companies, global trends and foreign fund movement. Besides, other key factors like rupee-dollar trend and Brent crude oil price will also guide the market sentiment, he added.
“This week, the participants will first give feedback on the TCS numbers. In addition, macroeconomic data eg. The focus will be on IIP and CPI on 12 July and WPI on 14 July. Apart from domestic factors, global cues like performance of US markets, crude oil movement etc will remain on the radar,” said Ajit Mishra, VP – Research, Religare Broking Ltd.
India’s largest IT services firm Tata Consultancy Services (TCS) on Friday reported a 5.2 per cent rise in consolidated net profit at Rs 9,478 crore for the first quarter ended June 30. It registered a growth of 16.2 per cent in revenue. 52,758 crore for the quarter, with all major geographies and business segments reporting strong numbers, but it was operating profit margins, which fell to 23.1 per cent – much lower than the aspirational band of over 26 per cent – that led to Profit hurts growth. Brokerage firm Prabhudas Lilladher said the company missed both revenue and margin in its June quarter results.
On the earnings front, ACC, HCL Technologies, Jindal Steel & Power, Mindtree, Federal Bank and HDFC Bank will announce their Q1 numbers during the week. “… IIP and CPI numbers will be announced on 12 July while WPI will be announced on 14 July. On the global front, US CPI numbers, IIP and job numbers will be the key factors,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Besides, the behavior of FIIs and the direction of rupee and crude oil prices will be other important factors, he said. The BSE Sensex rose 1,573.91 points or 2.97 per cent last week, while the NSE nifty climbed 468.55 points or 2.97 per cent.
Apoorva Sheth, Head, Market Perspectives, Samco Securities, said, “This week is going to test the market in many ways as there are many important events lined up. The much-anticipated inflation numbers and jobless claims figures from the United States will keep global markets on their toes. “The problem of inflation is not limited to the West only, thus the Indian inflation numbers will also keep the markets busy,” he said. Quarterly results will affect the market sentiment. Sheth said management comments on the future earnings growth trajectory would be of interest to Dalal Street.
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