Research business

Global factors, macro data and earnings to drive market trends this week

Trends in global markets, inflation, the release of industrial production data and quarterly earnings will dictate the movement of equity benchmarks this week, analysts said, adding that volatility could also continue amid a flurry of macroeconomic data announcements around the world.

In addition, foreign fund movements, crude oil prices and the trend of the rupee would also act as major drivers for the equity market, they added.

“The direction of global stock markets as well as the development of the dollar index and crude oil prices will continue to dominate while US inflation figures on May 11 and inflation figures and of India’s PII on May 12 will also cause volatility in the market,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Meena said the latest batch of fourth quarter earnings will have stock specific movement with SBI, Tata Motors, L&T, UPL, Tech Mahindra and Cipla are among the key results expected to be announced.

“This week, attendees will first react to Reliance figures that were announced post-market on Friday. In addition, developments on the Russian-Ukrainian front and the performance of global markets will be on the radar.

“On the macro side, IIP (Industrial Production Index) and CPI (Consumer Price Inflation) data are scheduled for May 12 and the market will be watching these numbers to gauge the possible next move of the RBI,” Ajit said. Mishra, vice president of research. , Religare brokerage.

Reliance Industries Ltd of billionaire Mukesh Ambani announced on Friday a 22.5% increase in its net profit for the quarter ended March 2022 thanks to exceptional oil refining margins, steady growth in telecommunications and digital services and a strong momentum in retail trade.

This week, the market will follow inflation numbers across the world, said Vinod Nair, head of research at Geojit Financial Services.

Yesha Shah, head of equity research at Samco Securities, said: “Given the flurry of macro releases, the ongoing earnings season and several IPOs that will be open for subscription, the observed volatility last week should persist. Global market movements will be determined by inflation figures in the United States and China.

“Data on India’s industrial production, domestic inflation rates and manufacturing output will keep Indian markets on edge.”

Last week, the Sensex fell 2,225.29 points or 3.89%, while the Nifty lost 691.30 points or 4.04%.

Dalal Street withered under intense selling pressure on Friday, reflecting a slump in global stocks as investors braced to slow global growth amid tightening central bank policy.

The 30-stock BSE Sensex plunged 866.65 points or 1.56% to end at 54,835.58 on Friday. Similarly, the broader NSE Nifty fell 271.40 points or 1.63% to settle at 16,411.25.

“It was the fourth consecutive week of loss for the Indian stock market and it was one of the worst weeks of 2022 following a surprise rate hike by RBI and a sharp fall in global markets after the US Fed policy,” Meena added.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor