The trend of global markets, inflation, industrial production data and quarterly results of companies will decide the direction of the stock markets this week. Analysts have expressed this opinion. Analysts believe that during the week, there are many macroeconomic data coming at the global level, due to which the volatility in the markets may continue.
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Apart from this, the flow of foreign funds, crude oil prices and the movement of rupee against the dollar will also decide the direction of the market. Santosh Meena, Head of Research, Swastika Investmart said, “The trend of global markets, volatility of dollar index and crude oil prices will continue to influence the market. Apart from this, US inflation data is to come on May 11, while India’s inflation and industrial production data is to come on May 12. These numbers will certainly be important from the market point of view.
Meena said that now the final batch of the results of the fourth quarter of the last financial year is yet to come. Because of this, some stock-specific movements can be seen. Big companies like SBI, Tata Motors, L&T, UPL, Tech Mahindra and Cipla will announce quarterly results during the week.
Ajit Mishra, Vice President Research, Religare Broking said, “The market will be the first to react to the quarterly results of Reliance Industries, which have been announced after the market close on Friday. Apart from this, the Russia-Ukraine war and the performance of other markets will also have an impact here.” On the macroeconomic front, the inflation data based on Industrial Production (IIP) and Consumer Price Index will come on May 12. The market will keep an eye on these figures.
Reliance Industries’ net profit for the quarter ended March 2022 grew by 22.5 percent. Reliance’s profit has risen on the back of a strong jump in oil refining margins, sustained growth in the telecom and digital services sector and a strong growth in retail. Vinod Nair, Head of Research, Geojit Financial Services, said that this week the market will react to the inflation data around the world. Yesha Shah, Head of Equity Research, Samco Securities said, “Besides macroeconomic data, quarterly results, there are going to be several Initial Public Offerings (IPOs) open during the week. In such a situation, volatility will continue in the market for now. Inflation data from the US and China will decide the trend of global markets.” Last week, the 30-share BSE Sensex fell 2,225.29 points or 3.89 per cent. On the other hand, the Nifty of the National Stock Exchange lost 691.30 points or 4.04 percent.