Last week, benchmark indices closed with marginal gains amid continued selling by FIIs, depreciating rupee and inflationary pressure. BSE Sensex rose 179.95 points, or 0.34 per cent, to 52,907.93 during the week ended Friday nifty 52.80, or 0.34 percent, to 15,752.05. An increase in export taxes on oil producers on July 1 dragged down the oil and gas sector as well as the market, but later in the day other sectors helped offset losses.
Also, the rupee on Friday closed 12 paise higher at 78.94 (provisional) from its all-time low against the US dollar. Dilip Parmar, Research Analyst, HDFC Securities, said, “The Indian government’s efforts to tighten oil exports and gold imports did little to change the market mood as participants were concerned about capital outflows, risk-off sentiments and mounting losses. I was worried.”
Experts said consolidation is expected to continue with all eyes on corporate earnings and global cues, including the release of the minutes of the Federal Reserve Open Market Committee (FOMC) meeting.
“Participants will be closely monitoring the results for any change in guidance amid fears of a global recession. In addition, updates on the performance of global indices, crude oil movement and the ongoing Russia-Ukraine conflict will be taken into account.
The coming week will also be crucial as it marks the start of a new earnings season, information and technology services major, TCS announced its first quarter results on July 08, 2022. Additionally, investors will also await the release of S&P Global. Services PMI, S&P Global as on July 05 India The service PMI rose to 58.9 in May 2022, the highest since April 2011, from 57.9 in April.
Q1 Company Results
The June quarter corporate earnings season will begin on July 8 by Tata Consultancy Services, the country’s largest software services exporter, followed by Avenue Supermarts, operator of the supermarket chain of D-Mart stores, the next day. Therefore, there may be some stock-specific action in the market.
With the rise in job losses, the IT sector is expected to see margin pressure, while infrastructure and some cyclical sectors may see early signs of slowdown. auto Experts said that in the quarter ended June 2022, good numbers can be seen for FMCG companies.
global signal
On the global front, investors will be eyeing some economic data for the world’s largest economy, the United States (US), starting with the Factory Order MoM on July 5, followed by MBA Purchase Index, Redbook, S&P Global Services PMI Final , FOMC minutes will be held in July. 6, trade balance, initial jobless claim on 07 July and finally Baker Hughes total rig count on 08 July.
fed meat minutes
The Federal Reserve will release the minutes of its June monetary policy meeting, which will be closely watched by investors globally for economic progress and rate-growth trajectory.
In the June meeting, the FOMC raised interest rates by 75 bps, the biggest increase in three decades. Chairman Jerome Powell has indicated a further hike in rates by 50-75 bps at the July meeting to bring inflation back to its 2 percent target without impacting economic growth.
oil prices
Oil prices remained volatile, with international benchmark Brent crude futures rising as high as $120 a barrel and falling to $108 a barrel in the passing week before closing down 1.4 percent from the previous week. Experts said that above $100 a barrel, oil remains a risk for importing countries like India and until it falls below that threshold, the market is expected to rally.
Tight supplies on account of geopolitical tensions are supporting the prices, however, bearish concerns weighed on the sentiment and led to a slight decline in prices on a weekly basis.
The views and investment suggestions of experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decision.
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