Inflation, Q4 results among key factors for Dalal Street in coming week

The benchmark Nifty 50 index rose 1.36% or 245.8 points to close at 18,314.80, while the BSE Sensex climbed 1.59% or 973.61 points to end the week at 62,027.90. The BSE Largecap and Midcap indices also gained 1.3 per cent each during the week. The Smallcap index added 1%.

“During the week, the domestic market was influenced by positive global market trends which revolved around US inflation number and jobs data. The moderation of US inflation to below 5 per cent has provided a welcome respite for investors, indicating that the Federal Reserve’s efforts to raise interest rates have effectively contained inflation, said Vinod Nair, head of research at Geojit Financial Services. managed levels.

However, weak macroeconomic data, such as elevated jobless claims and modest increases in producer prices fueled concerns about slowing economic growth, dampened market sentiment in the latter half.

Read here: Sensex, Nifty close with gains; Midcap, smallcap performance weak

Last week, eight of the top 10 top companies on the exchanges added simultaneously 1,26,579.48 crore at market valuation, with Reliance Industries and Hindustan Unilever Ltd emerging as the biggest gainers.

Reliance IndustriesTata Consultancy Services (TCS), HDFC Bank, ICICI Bank, Hindustan Unilever, State Bank of India, HDFC and Bharti Airtel were among the gainers, while ITC and Infosys saw a correction in their valuations.

Going forward, domestic inflation numbers, macro data, Q4 earnings and global cues will influence the domestic markets next week.

“On Monday the markets will react to India’s inflation data and Karnataka election results. Market is now consolidating since last 4 days and waiting for fresh triggers for next leg of rally as market structure remains positive. Siddharth Khemka, Head-Retail Research, Motilal Oswal Financial Services Ltd said that investors will keep an eye on the economic data to be released next week.

Here are the major triggers for Dalal Street in the coming week:

inflation figures

of India retail inflation In April, inflation fell to an 18-month low of 4.7%, close to the Reserve Bank of India’s (RBI) target of 4%, according to government data released on Friday.

Meanwhile, the Wholesale Price Index data is also scheduled to be released on May 15. The country’s annual WPI-based inflation fell to a 29-month low of 1.34% in March.

Analysts believe that with CPI inflation at 4.7%, this number will give comfort to the Monetary Policy Committee (MPC) of the RBI and hence put a hold on the repo rate hike.

IIP data

of India industrial production growth According to official data, it fell to a five-month low of 1.1% in March from 5.8% in February 2023, dragged down by the poor performance of the power and manufacturing sectors.

“The deceleration in IIP growth in March is worrying. The contraction in the consumer goods segment is particularly worrying. Going forward, it is important to show a recovery in domestic consumption demand, given that external demand is likely to remain weak. The pick-up in investment demand will also depend on a sustained recovery in domestic consumption demand, Care Ratings said in a report.

corporate earnings

The March quarter earnings season is in its final leg and more than 500 companies will announce their quarterly results in the week ending May 21. The list includes big names like Bharti Airtel, ITC, State Bank of India, IOC, GAIL India, JSW Steel among others. , NTPC, Jindal Steel & Power, POWERGRID Corporation of India and Bank of Baroda.

Other major companies such as Jubilant Foodworks, Tata Eleksi, Motherson Sumi Wiring, PVR Inox and Zomato will also announce their Q4FY23 earnings during the week.

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Nexus Select Trust REIT Listing

Nexus Select Trust REIT IPO received strong response from investors as the issue was subscribed 5.45 times on the last day of bidding. The IPO received bids for 101 crore units against the offer size of 18.52 crore shares.

Nexus Select Trust REIT IPO allotment is to be finalized on May 16 and the listing will take place on May 19. After the closure of Nexus Select Trust IPO subscription, the company’s shares are available premium of 5 per share in the gray market,

FII and DII flows

Foreign Institutional Investor (FII) buy indian shares by value 7,750 crore between May 8-12, while domestic institutional investors (DIIs) net sold shares. 1,262 crore during the period, as per the data available with the exchanges.

FII flows in after they invest 5,527 crore in the domestic markets in the first week of May.

corporate action

Next week, shares of 16 companies will trade on ex-dividend. These companies include Anupam Rasayan India, Sula Vineyards, Tata Coffee, HDFC, HDFC Bank, Sundaram Fasteners, Foseco India, Man Infraconstruction, Advanced Enzyme Technologies, Colgate-Palmolive, Home First Finance Company India, JM Financial, Rain Industries and Tata Consumer. Are. product.

Read here: Stocks That Will Turn Ex-Dividend From May 15-20; HDFC Bank, Colgate, Tata Consumer, others: Check list here

karnataka election result

The Congress party returned to power in the state of Karnataka with a strong majority, ousting the Bharatiya Janata Party (BJP) from its only southern fringe on Saturday.

“Congress has emerged as a clear winner as a result of the recently concluded Karnataka elections. While this can have an emotional negative impact on the market, it is important to note that much of this outcome has already been decided by investors. Hence, it is unlikely that we will see a significant reaction from the market in response to this development,” said Santosh Meena, head of research at Swastika Investmart Ltd.

Read here: Karnataka Election Result 2023: How will stock market react after BJP’s defeat?

global signal

A series of global macroeconomic data points will be released next week that are likely to impact financial markets.

In the US, retail sales data and industrial production for April will be released on May 16. API and EIA crude oil inventory data and housing straights for April will be released on May 17, while initial jobless claims for the week ending May 13 will be out. And the current home sales for April will be announced on May 18.

“While the global cues are relatively muted, market participants will be keeping an eye on the direction of US markets, bond yields and dollar index, which could potentially impact Indian equities,” Meena said.

(With PTI inputs)