During this week, markets will keep a close eye on TCS, Wipro, HCL Tech and Infosys Q2 corporate results for Q2 FY23. The focus will be on IT stocks largely on the back of quarterly earnings. Globally, FOMC Minutes is likely to dominate in boosting market sentiment. While the inflation print of major economies such as the US, China and India will also play a role in the performance. Domestic stocks will also keep an eye on the movements of global competitors. Last week, both Sensex and Nifty 50 gained over 3%. Sensex is currently below the level of 58,200 and Nifty 50 is close to the level of 17,315.
Last week on Friday, the Sensex closed at 58,191.29, down 30.81 points or 0.05%. While the Nifty 50 closed down 17.15 points or 0.1% at 17,314.65. of Tata group Titan Outperformed, Power Grid, IndusInd Bank, NTPC and Maruti Suzuki were among the top gainers. Stocks like M&M, UltraTech Cement, SBI, and TCS The top was lagging. In terms of sectoral indices, consumer durables stocks outperformed their peers, while metals, oil & gas and IT stocks were among the top bears. Altogether, Market Weak equity demand was witnessed.
Meanwhile, the Indian rupee on Friday hit a new record low of 82.43 against the US dollar and finally settled at 82.30 per dollar.
On the other hand, after being a net buyer for the third consecutive day last week, FIIs made outflows of On October 7, there was a purchase of Rs 2,250.77 crore in the markets. This week FII made purchases 279.01 crore on 6 October, 1,344.63 crore as on October 4, and 590.58 crore on 3 October.
Overall, the Sensex jumped over 1,775 points and the Nifty 50 over 530 points last week. Market capitalization of firms listed on BSE jumped 2,75,61,546.77 crore as on 7 October as compared to a market cap of Rs. 2,71,84,601.83 crore by 30th September, 2022 — an increase of 3,76,944.94 crores.
On Vinod Nair, Head of Research, Geojit Financial Services, the direction of the domestic market throughout the week was mostly determined by provisional trading data published by its global peers and major companies. A relief rally after an unexpected drop in the US manufacturing PMI raised hopes that the US Fed would slow down its policy tightening. However, scathing comments from Fed officials triggered a sell-off at the end of the week, ahead of the release of US jobs figures. Stronger job data than anticipated could dent the market as it could give the Fed more reason to focus on inflation. The decision to cut production significantly by OPEC has pushed up oil prices, which is marginally unfavorable for importers like India. Higher US bond rates made the dollar a safe haven, pushing the rupee to a new low.”
What to expect in the markets this week?
According to Nair, the market will focus on quarterly earnings in the coming week, especially for IT stocks. Additionally, the movement of the domestic market will be heavily influenced by the inflation data which is expected to be released next week. It is anticipated that domestic inflation in September will remain as high as the previous month at 7.0%.”
While Apoorva Sheth, Head of Market Perspectives, Samco Securities said, “The coming week is going to be a roller-coaster ride as several important events are about to release. Markets across the globe will be dominated by the FOMC minutes which will be next week. While global investors will closely monitor inflation data in the United States and China, the Indian CPI will be a major domestic factor for print monitoring. In addition, Indian IT companies will begin the quarterly results season. Stock-specific volatility- The lows will be clear, and as investors respond to earnings crunch and beating, they should consider the company’s long-term prospects rather than focusing exclusively on quarterly results.”
On the 50-point benchmark, Sheth said, “Nifty ended the week up a little over 1%. After a massive pullback from the 18,100 level a few weeks ago, it appears that the bulls are finally making a comeback. Expected to maintain 17,000 for the month of October before retesting at 18,100. Short-term resistance lies at 17,500 levels. Nifty 50 closed the week up 1.29% at 17314.65.
The start of Q2 corporate results this week will be the first major earnings release with TCS quarterly earnings due on October 10. HCL Tech and Wipro will announce Q2 results on October 12, followed by Infosys on October 13.
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