Global elements, macro knowledge, earnings to drive market trends this week

Global markets trends, inflation, launch of commercial output knowledge and quarterly earnings will dictate motion of the fairness benchmarks this week, analysts mentioned, including that volatility would possibly proceed amid slew of bulletins of macroeconomic knowledge on the world degree too.

Moreover, overseas fund motion, crude oil costs and development in rupee would additionally act as main drivers for the fairness market, they added.

“The direction of global equity markets along with movement in dollar index and crude oil prices will continue to dominate while inflation numbers of the USA on May 11 and inflation and IIP numbers of India on May 12 will also cause volatility in the market,” mentioned Santosh Meena, Head of Research, Swastika Investmart Ltd.

Meena mentioned the final batch of fourth quarter earnings may have a stock-specific motion with SBI, Tata Motors, L&T, UPL, Tech Mahindra and Cipla are among the many key outcomes slated to be introduced.

“This week, individuals will first react to Reliance numbers which had been introduced post-market on Friday. Besides, developments on the Russia-Ukraine entrance and efficiency of worldwide markets can be on the radar.

“On the macroeconomic front, IIP (Index of Industrial Production) and CPI (Consumer Price Inflation) data are scheduled for May 12 and market will be eyeing these numbers to gauge the next possible move from the RBI,” mentioned Ajit Mishra, VP Research, Religare Broking.

Billionaire Mukesh Ambani’s Reliance Industries Ltd on Friday reported a 22.5 per cent rise in its web revenue for the quarter ended March 2022 on the again of bumper oil refining margins, regular progress in telecom and digital companies and robust momentum within the retail business.

This week, market will observe inflation numbers throughout the globe, mentioned Vinod Nair, Head of Research at Geojit Financial Services.

Yesha Shah, Head of Equity Research, Samco Securities, mentioned, “Given a slew of macroeconomic releases, the present end result season and a number of other IPOs that can open for subscription, volatility seen final week is anticipated to persist. Global market actions can be decided by inflation numbers of the United States and China.

“Data on India’s industrial output, domestic inflation rates and manufacturing output will keep Indian markets on edge.”

Last week, the Sensex slumped 2,225.29 factors or 3.89 per cent, whereas the Nifty lost 691.30 factors or 4.04 per cent.

Dalal Street wilted underneath intense promoting stress on Friday, mirroring a meltdown in world equities as buyers braced for slowing world progress amid coverage tightening by central banks.

The 30-share BSE Sensex dived 866.65 factors or 1.56 per cent to end at 54,835.58 on Friday. Similarly, the broader NSE Nifty tumbled 271.40 factors or 1.63 per cent to settle at 16,411.25.

“It was the fourth straight week of loss for the Indian equity market and it was among the worst week of 2022 on the back of a surprise rate hike by RBI and a sharp fall in global markets after the US Fed policy,” Meena added.

(Only the headline and movie of this report could have been reworked by the Business Standard workers; the remainder of the content material is auto-generated from a syndicated feed.)

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