As the new trading week unfolds, stock markets brace for the release of crucial quarterly earnings reports from IT giants TCS and Infosys, which are expected to significantly influence trading sentiments. Analysts foresee these corporate earnings and global trends as major influencers guiding the markets in the coming days.
Apart from the eagerly anticipated earnings of TCS and Infosys, analysts highlight the impact of global indicators such as the Brent crude benchmark, the trajectory of the rupee against the dollar, and the investment activities of foreign investors on market movements.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, underscored the attention on the corporate performance starting the third quarter of the fiscal year. Gour emphasized the significance of monitoring the rupee’s performance against the dollar and the movement in crude oil prices, indicating their potential influence on market trends.
This week will witness TCS and Infosys unveiling their earnings on Thursday, followed by HCL Technologies and Wipro on Friday. The impending third-quarter result season, commencing this week, emerges as the immediate focal point, as stated by Sunny Agrawal, Head of Fundamental Equity Research at SBI Securities Ltd.
In addition to these earnings, macroeconomic data announcements are also set to make an impact. Scheduled post-market hours on Friday are the revelations of December inflation data and November industrial production data, likely to stir market reactions.
Arvinder Singh Nanda, Senior Vice-President of Master Capital Services Ltd, stressed the market’s response to macroeconomic data, global bond yields, crude oil inventories, dollar index fluctuations, and the investment movements of FIIs and DIIs.
The spotlight will extend to a gamut of global economic data points, including US inflation figures, initial jobless claims, Chinese inflation data, and the UK GDP. The previous week witnessed the BSE benchmark declining by 214.11 points (0.29 percent), while the Nifty slipped by 20.6 points (0.09 percent).
Analysts are keenly observing how markets will react to the earnings season initiated by TCS and Infosys on January 11, with other major players like HCL Tech, Wipro, and HDFC Life slated to announce their results in the same week. Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd, anticipates these earnings to serve as crucial market drivers in the days ahead.
