Ongoing quarterly corporate earnings, global trends, macro indices and the initial public offering (IPO) of Life Insurance Corporation of India (LIC) will be the main driving force for the stock market next week, analysts predict.
Analysts have suggested that investors keep a tab on the movements of foreign institutional investors who have been on the sell side of the domestic equity market for the past several days.
Santosh Meena, head of research at Swastika Investments, said: “Global inflation is a major concern for the equity market.
He added, “The sell-off in the US market, especially in technology stocks, has been very serious and there has been some stability in the last two trading sessions that could give bulls some leeway.”
Meena said there are no big hints for this week so the direction of global hints will be important, but some stock-specific movements will continue towards the end of Q4 earnings.
“On the domestic front, listing LIC IPOs will be a key emotional trigger for the Indian equity market. Direction will be another important factor, “he added.
Binod Nair, head of research at Geojit Financial Services, said: “The weakening rupee, rising global interest rates, rising inflation and long-standing concerns about a lockdown in China have put the market on edge this week. Expected US CPI data release indicates that inflationary pressures will continue in the near term. “
“However, it is expected to reach a peak and will gradually decline with the ongoing fall in crude and other commodity prices and the slowdown in the economy. The Fed has limited the liquidity, which has limited further disasters in the future, surprising the market with a strong position, ”he added.
Binod Nair also hoped for market stability as FII sales factoring reduced inflation and Fed policy. On the other hand, DII has lost their confidence due to continuous losses.
Given the current volatility in the market, investors prefer defensive sectors like IT and pharma, which are supported by the weakness of the rupee, he said, adding that the key determinant for market direction would be the pace of inflation in response to the Fed regime.
Srikanth Chauhan, Head of Equity Research (Retail), Kotak Securities, said: Continue because of the results season. “
Bharti Airtel, DLF, IOC, ITC, IDFC, JK Tire & Industries and NTPC are among the companies that will announce their financial results this week.
Last week, the Sensex lost 2,041.96 points, or 3.72 percent, while the Nifty fell 629.10 points, or 3.83 percent.
(With PTI input)