Inflation fears, hope for healthy earnings to guide stock market movement

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India Inc’s quarterly earnings season for Q4FY22 along with macro inflation and industrial production data points will guide domestic stock market moves next week.

In addition, movements in crude oil prices as well as those of other major commodities will influence investor sentiment.

“The fourth quarter earnings season will start from Monday and the market will focus on individual stocks,” said Deepak Jasani, head of retail research, HDFC Securities.

“The RBI has become slightly hawkish and that could impact valuations in the markets over time.”

Moreover, Jasani expects that Nifty can now take the support of the 17,522-17,560 band and face the resistance of the 17,900-17,921 band over the next few days.

According to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, overall stock markets have shown strong resilience despite headwinds from an uncertain global environment and persistent inflation.

“The Q4 FY22 earnings season kicks off next week and will be the key driver of market direction going forward.”

Along with the Q4FY22 results, the Central Statistics Office (CSO) is expected to release the Industrial Production Index (IPI) and Consumer Price Index (CPI) macro data points on March 12.

Additionally, investors will be eagerly awaiting macro data points from the WPI (Wholesale Price Index) and Indian trade numbers.

“Going forward, the focus will be on the fourth quarter earnings season, which begins next week led by the IT and banking sector. The outlook for the banking sector is robust due to the rapid rebound in credit growth. and balance sheet improvement while the outlook for IT is mixed as the fourth quarter is seasonally weak,” said Vinod Nair, head of research at Geojit Financial Services.

“The market is also awaiting the release of key national economic data such as the inflation rate for March, industrial production and manufacturing production data next week.”

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Posted: Saturday 09 April 2022, 21:54 IST

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