stock market
The direction of local stock markets will be decided this week by the quarterly results of companies, inflation data and activities of foreign investors. Analysts have expressed this opinion. December quarter results of big companies like Infosys, Reliance Industries are to be announced this week. Apart from this, investors will also keep an eye on the prices of crude oil and the movement of rupee against the dollar. Last week, investor sentiment was affected by the strengthening of the US dollar and rising bond yields in the US. Swastika Investmart Ltd. Pravesh Gaur, senior technical analyst, said, “This week will be full of ups and downs for the Indian stock markets. “Investors are eagerly waiting for the third quarter results of big companies.”
Results of many big companies will come
He said that this week big companies like Infosys, Reliance Industries, HCL Technologies, HDFC AMC, HDFC Life Insurance Company and Axis Bank will announce their December quarter results. He said there is an ongoing ‘struggle’ between foreign institutional investors (FIIs) and domestic institutional investors (DIIs) in the local market. “Consumer Price Index (CPI) based inflation data will come on Monday, which is very important for the market,” said Siddharth Khemka, Head-Research (Wealth Management), Motilal Oswal Financial Services Limited. Wholesale Price Index (WPI) Based inflation data will be released on Tuesday.
Why did the market fall?
Last week, the 30-share BSE Sensex fell 1,844.2 points or 2.32 percent. At the same time, Nifty of National Stock Exchange lost 573.25 points or 2.38 percent. Puneet Singhania, director of Master Trust Group, said, “The sharp decline in the market has happened due to many reasons. This includes factors like withdrawal of foreign funds, weaker than expected third quarter results of companies, continuous fall of rupee against the dollar and increase in yield on 10-year bonds in America. Singhania said, “Apart from this, the dollar index “Strength in the US and sharp rise in crude oil prices have increased concerns about inflation, which has further affected investor sentiment.”
Inflation figures are also important
According to official data released on Friday, the growth rate of industrial production (IIP) in November 2024 increased to a six-month high of 5.2 percent on an annual basis. Vinod Nair, head of research, Geojit Financial Services, said, “Going forward, everyone’s eyes will be on the third quarter results of the companies. During the week, December quarter results of IT sector giants and others are coming. Also, macroeconomic data like inflation will also play an important role in giving direction to the market.” Nair said that if we talk about the global front, the US economy, especially the labor market data and inflation trend, will be of interest to foreign institutional investors (FIIs). Can affect the flow of.
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