Global trends, top earnings drivers for stock markets this week: analysts


Global trends, WPI inflation data for April and ongoing quarterly corporate earnings would be the main drivers for stock markets, analysts said.

Investors would also keep an eye on the movement of foreign institutional investors who have been selling in the domestic stock market for several days.

“Inflation and monetary tightening worries around the world are major concerns for equity markets. Equity markets are in a strong bear grip, but they look extremely oversold and should see a rebound.

“The sell-off in the US market, especially in tech stocks, has been very severe and there is some stability over the past couple of trading sessions that could give bulls some breathing room,” said Santosh Meena, Head of Research, Swastika Investmart Ltd. .

Meena said there were no major indices for this week, so the direction of the global indices will be important, however, some stock-specific moves will continue amid the end of Q4 earnings.

“On the home front, the LIC IPO listing will be a key sentimental trigger for the Indian stock market. FIIs are selling relentlessly while DIIs are trying to offset their selling, so their behaviors will also play an important role in the direction of the The movement of the dollar index, crude oil prices and the direction of the rupee will be other important factors,” he added.

Investors would also pay attention to WPI inflation data for April due out on Tuesday, analysts said.

Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, said: “Rising bond yields, high inflation levels and monetary policy tightening by global central banks will weigh on sentiment to short term, which could keep the markets volatile. continue due to the current earnings season.”

Bharti Airtel, DLF, IOC, ITC, IDFC, JK Tire & Industries and NTPC are among the companies to announce their financial results this week.

Last week, Sensex lost 2,041.96 points or 3.72%, while Nifty plunged 629.10 points or 3.83%.

Ongoing worries about a weakening rupee, rising global interest rates, high inflation figures and lockdowns in China kept markets on edge last week, said Vinod Nair, head of the research at Geojit Financial Services.

Going forward, the main determinant of market direction would be the pace at which inflation falls in response to the Fed’s actions, he added.


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