Earnings, Global Trends, FII Trading Activity To Drive Market Movement: Analysts

Continued corporate quarterly earnings reports, global trends and foreign investor trading activity are key factors driving stock market momentum this week, analysts said.

Moreover, markets would also focus on the global oil benchmark Brent crude and the rupee-dollar trend.

“On the domestic front, the upcoming release of the second quarter earnings report is expected to have a significant impact on market sentiment. If financial institutions shift to net purchasing, this could further fuel the market’s upward movement,” said Swastika Investmart Ltd. head of research Santosh Meena. said.

While geopolitical concerns persist, they have had a limited impact on the overall trajectory of the market, Meena said. She added that the resilience of global markets will be crucial in determining the sustainability of this positive momentum.

On the macroeconomic front, industrial production figures are expected to be released after market hours on Friday.

“Global and domestic macroeconomic events, FII, DII investment pattern, crude oil inventories, movement of the rupee against the dollar, US bond yields, the ongoing Israel-Hamas conflict, the ongoing second quarter earnings season will drive the trend dictate the market this week. ” said Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd.

Some major companies will announce their quarterly results in the coming days such as HPCL, NHPC, IRCTC, Power Grid, Tata Power, Ashok Leyland, Coal India, Hindalco, LIC, Mahindra & Mahindra, Tata Chemicals, Nanda said.

Last week, the benchmark BSE rose 580.98 points, or 0.91%, while the Nifty rose 183.35 points, or 0.96%.

The 30-share BSE Sensex climbed 282.88 points, or 0.44%, to settle at 64,363.78 on Friday. The Nifty rose 97.35 points, or 0.51%, to 19,230.60.

“Optimism is supported by solid global cues, stable macroeconomic data and strong domestic corporate earnings. Indications that the Fed is unlikely to raise rates in the future and a modest decline in oil prices are adding to the optimism,” says Vinod Nair, head of research at Geojit Financial Services, said on Friday.