Global Trends, Quarterly Earnings Key Stock Market Drivers This Week: Analysts


Analysts say stock markets will look for directions from global trends, ongoing quarterly earnings and Foreign Institutional Investors (FII) investment patterns during a shortened holiday week and could encounter volatility in the midpoint of the scheduled monthly expiration of the derivatives.

Stock markets will remain closed on Wednesday due to Republic Day.

“This week is a shortened holiday week and it is going to be critical due to the list of events and data that are lined up. First, markets will react to earnings from two index heavyweights – Reliance Industries and ICICI Bank,” said Ajit Mishra, Vice President (Research) at Religare Broking.

Mishra added that currently the uncertainty surrounding the quantum of a rate hike by the US Federal Reserve is spooking markets around the world and participants are expecting clarity in the outcome of the scheduled FOMC meeting ( Federal Open Market Committee) on January 26. the monthly expiration of the January derivatives contract would keep traders on their toes,’ he said.

Looking ahead to the budget, sector-specific expectations will further add to the turmoil, he added.

“On the earnings front, we have big names like Axis Bank, Kotak Mahindra Bank, Maruti, Cipla, Vedanta and Larson & Toubro which will announce their results along with several others,” Mishra said.

Weak global sentiment wreaked havoc on the volatile domestic market last week.

Last week, the Sensex lost 2,185.85 points or 3.57%, while the Nifty fell 638.60 points or 3.49% as global stocks sold off amid concerns regarding inflation and the tightening of monetary policy. ”Indexes saw a 4% decline in the past week as REITs posted gains on large caps and some high quality mid caps.

“Rising oil and input prices coupled with a slowing rural economy kept investors alert as markets turned volatile,” said S Ranganathan, Head (Research) at LKP Securities.

The market trend will also depend on the rupee-dollar movement and Brent.

“Results from heavyweights Reliance Industries and ICICI Bank over the weekend would give direction to the market on Monday,” said Siddhartha Khemka, head (retail research) at Motilal Oswal Financial Services Ltd.

Other companies that announced their results this week are Federal Bank, BHEL, Canara Bank and PNB. “This week, the domestic market is expected to remain very volatile as investors await the outcome of the upcoming budget announcement.

“As recent earnings failed to excite the market, this week’s results will be a key factor in determining investor confidence,” said Vinod Nair, head (research) at Geojit Financial Services.

Billionaire Mukesh Ambani’s Reliance Industries Ltd reported its best-ever quarterly performance in October-December 2021 on Friday, helped by a slight rise in two ‘Rs’ – refining and retail, with a recent tariff hike accelerating growth in Jio and a one-time gain from the sale of shale gas activities in the United States.

The oil-retail-telecom conglomerate’s consolidated net profit rose 35.6% sequentially and 41.5% year-on-year to Rs 18,549 crore in the quarter ended 31 December 2021, the company said in a statement.

Private sector lender ICICI Bank on Saturday reported an almost 19% rise in its consolidated profit to Rs 6,536 crore for the quarter ended December 2021, helped by a rise in net interest income (NII) and a decrease in provisions.

Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, said: “Investors will be focused on the upcoming Union budget, earnings season and the national elections in India.” PTI SUM HRS hrs

(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)


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