Stock Market This Week: Analysts Say Macro-economic Data, Global Trends, Q1 Earnings To Drive Market Sentiments

Analysts suggest that trading sentiments in the equity market during the upcoming holiday-shortened week will be primarily influenced by macroeconomic data releases, the final round of Q1 earnings reports, and global market trends.

Besides, the trading activity of foreign investors would also be a crucial factor in dictating movement in the market.

Also Read: FPIs Turn Net Sellers; Withdraw Rs 13,400 Crore From Equities In August

“This week, all focus will be on the global markets as we can see the extension of weakness after a long period of stability. The Indian equity market could also witness some bit of levelling off this week as investors process recent gains and contend with high prices. Geopolitical tensions are also escalating, but markets are not reacting significantly, which is reflected in the declining crude oil prices,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

15 August Stock Market Holiday

Equity markets would remain closed on Thursday for Independence Day.

Stock Market Updates

On the domestic front, the last batch of Q1 earnings will drive stock-specific movements. Hero MotoCorp, Hindalco are some of the big corporate earnings this week, he added.

“Additionally, institutional flows will play a crucial role in market dynamics,” Gour said.

Vodafone Idea, NMDC, IRCTC, SJVN and PC Jeweller will also announce their quarterly earnings during the week.

From the macroeconomic front, industrial production data for June and the inflation rate for July will be announced on Monday. WPI inflation data will be out on Wednesday.

Indian inflation data is due this week, said Vinod Nair, Head of Research, Geojit Financial Services.

“Moving forward, the direction of the domestic market will be influenced by global markets,” Nair added.

Last week, the BSE benchmark slumped 1,276.04 points or 1.57 per cent, while the Nifty declined 350.2 points or 1.41 per cent.

Stock markets globally faced a sharp correction last week triggered by the unwinding of the yen carry trade and recession fears in the US.

Mcap of 8 of Top-10 Most Valued Firms Erodes by Rs 1.66 Lakh Cr

The combined market valuation of eight of the top-10 most valued firms eroded by Rs 1,66,954.07 crore last week, with Reliance Industries and Life Insurance Corporation of India emerging as the biggest laggards, in line with weak trend in equities.

The market capitalisation (mcap) of Reliance Industries tanked Rs 33,930.56 crore to Rs 19,94,765.01 crore, the most among the top-10 firms.

The valuation of Life Insurance Corporation of India (LIC) slumped Rs 30,676.24 crore to Rs 7,17,001.74 crore.

State Bank of India lost Rs 21,151.33 crore from its valuation which stood at Rs 7,35,566.52 crore.

The market valuation of Infosys dived Rs 20,973.19 crore to Rs 7,35,277.28 crore and that of Tata Consultancy Services (TCS) tumbled Rs 19,157.77 crore to Rs 15,30,469.11 crore.

Bharti Airtel’s mcap got wiped out by Rs 16,993.56 crore to Rs 8,33,396.32 crore and ICICI Bank suffered an erosion of Rs 16,975.55 crore to Rs 8,25,201.23 crore.

The valuation of HDFC Bank declined by Rs 7,095.87 crore to Rs 12,56,505.53 crore.

However, the mcap of Hindustan Unilever jumped Rs 12,946.24 crore to reach Rs 6,45,808.65 crore.

The valuation of ITC climbed Rs 8,406.26 crore to Rs 6,19,829.37 crore.

Reliance Industries retained the title of the most valued firm followed by TCS, HDFC Bank, Bharti Airtel, ICICI Bank, State Bank of India, Infosys, LIC, Hindustan Unilever and ITC.

(With PTI inputs)