US Fed Interest Rate Decision, Q1 Earnings To Drive Stock Markets This Week, Say Analysts
Investors would also track global market trends and the movement in global oil prices for further cues.
The US Fed interest rate decision, ongoing quarterly earnings, macroeconomic data and FII trading activity are the major triggers that will drive stock markets this week, analysts said.
Investors would also track global market trends and the movement in global oil prices for further cues.
"This week, the focus will shift to global cues, particularly the US markets,” Santosh Meena, head of research, Swastika Investmart Ltd. said.
The US Federal Reserve is set to announce its interest rate decision on July 31, which will be crucial as the market anticipates a potential rate cut soon this year.
“Additionally, other macroeconomic data from the US and China will be closely monitored. On the domestic front, Q1 earnings will remain a key trigger, with many large companies scheduled to report their results," Meena said.
GAIL, Adani Power Ltd., Bank of Baroda, BHEL, Coal India Ltd., M&M Ltd., Maruti Suzuki India Ltd., Tata Steel Ltd., Adani Enterprises Ltd. and Tata Motors Ltd. are among the companies that will announce quarterly results this week.
"The outlook for the market will be guided by major domestic and global economic data such as India's infrastructure output, manufacturing PMI, China manufacturing PMI, BoE (Bank of England) interest rate decision, US nonfarm payrolls and Federal Reserve press conference," Arvinder Singh Nanda, senior vice president, Master Capital Services Ltd., said.
"Moving forward, the direction of the domestic market will likely be influenced by the progress of earnings season. Additionally, global economic updates, including the US Fed and BoE monetary policies, US employment data, and Eurozone GDP figures, are expected to impact market trends," said Vinod Nair, head of research, Geojit Financial Services Ltd.
Last week was marked by volatility, with profit-taking. The BSE benchmark rallied 728.07 points or 0.90% and the Nifty climbed 303.95 points or 1.23% last week.
"Global investors will in the coming week look out for earnings from the US market's biggest tech companies, a Federal Reserve policy meeting and closely watch employment data that could determine the near-term trajectory of US stocks," Deepak Jasani, read of retail research, HDFC Securities Ltd., said.
