Analysts said several macroeconomic data announcements during the week along with quarterly earnings of IT majors including Infosys and TCS are likely to set the trends in the equity market, which kicked off the year 2022 at a strong level.
In the meantime, market participants will keep a close watch on various developments and news around the rising COVID cases, both on the global and domestic front, he added.
“IT majors like Infosys, TCS, Wipro, HCL Tech and Mindtree will announce their numbers. Besides, banking heavyweight HDFC Bank’s results are also set. On the macroeconomic front, participants are eyeing IIP, CPI inflation and WPI inflation data. week. Amidst all, global cues and updates on the COVID situation will remain on the radar of the participants,” said Ajit Mishra, VP Research, Religare Broking.
He added that earnings will now dictate the market trend and participants expect an encouraging start by the IT giants.
While the markets are currently ignoring the rise in COVID cases, the extension of strict restrictions imposed by several states could dent sentiment, Mishra said.
Santosh Meena, Head of Research, Swastika Investmart Ltd said, “The market will be busy dealing with earnings of the IT giants… On the macro front, the IIP and CPI numbers will also be announced on January 12 while the WPI will be announced on January 14.”
He further said that the COVID cases are increasing rapidly across the world, however the market is complacent about it as the hospitalization and mortality rate is very low. For the third wave, the market’s eye will remain on the development.
Meena said that on the global front, rising crude oil prices could be a cause for concern, while inflation numbers from China and retail sales numbers from the United States would be other important factors.
Yasha Shah, Head of Equity Research, Samco Securities said, “Q3FY22 earnings season will begin with large-cap IT companies reporting first. On the macroeconomic front, investors will keep a close watch on the domestic inflation rate, as well as inflation in the United States. Numbers for the US and China.”
Last week, the BSE benchmark Sensex had jumped 1,490.83 points or 2.55 per cent.
“This week will be driven by trends in preliminary earnings results with a focus on the IT sector. It is also a busy week in terms of releasing macroeconomic data points such as inflation data for December and manufacturing and industrial production data for November, ” he said. Vinod Nair, Head of Research, Geojit Financial Services.
Investors will also keep an eye on rupee movements and foreign institutional investors (FIIs).
This story has been published without modification in text from a wire agency feed.
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