Trading in the equity market this week will be highly influenced by a host of important triggers, with quarterly earnings from IT majors TCS, Wipro, and domestic inflation and IIP data taking the centre stage in dictating the movement in equities, analysts said.
Besides, global factors and trading activity of foreign investors will also drive markets.
"We are approaching the first quarter earnings season, with HCL Tech, TCS and Wipro set to report their earnings this week. Furthermore, market participants will react to the inflation and IIP (Index of Industrial Production) data scheduled for release on July 12. The US macroeconomic indicators and the movement of crude oil prices will also be closely monitored," said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Markets last week
Last week, the 30-share BSE benchmark jumped 561.89 points or 0.86 per cent. The BSE Sensex hit its all-time intraday peak of 65,898.98 on July 7.
The market capitalisation of BSE-listed firms hit a lifetime peak of Rs 301.70 lakh crore on Thursday, mirroring a positive trend in domestic equities.
The BSE benchmark fell by 505.19 points or 0.77 per cent on Friday after a record rally.
"The market overheated after the spectacular rally in recent sessions and profit-taking was due for sometime. With fresh concerns over interest rate hike by the US Fed resurfacing, investors shunned equities at will triggering a massive fall on the last day of the trading week," said Amol Athawale, Vice President - Technical Research, Kotak Securities Ltd.
Earnings
From the earnings front, HCL Tech, TCS, Wipro, Hathway Bhawani Cabletel, Angelone, Tata Metaliks, Federal Bank, Bandhan Bank, Just Dial, Dmart, Tata Steel and JSW Energy would also announce their June quarter results during the week.
Stock-specific action will pick up with the onset of the Q1 FY24 earnings season, Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said.
Technology sector is likely to remain in focus with TCS and HCL Tech announcing their results on Wednesday followed by Wipro on Thursday, Khemka added.
CPI Inflation
The consumer price inflation for June will be released on July 12 and it largely expected to be flat in comparison to 4.25 per cent recorded in May due to the rising food price, stable oil prices and steady core inflation.
Manufacturing Production Numbers
The manufacturing production numbers for May are scheduled to be released on July 14.
WPI
Investors would also track the WPI (Wholesale Price Index) inflation data for June which is scheduled to be announced on Friday.
Foreign Exchange Reserves
The Foreign Exchange Reserves for the week ended on July 7 and the deposit bank loan growth for the fortnight ended on June 30 will also be released on July 14.
US Inflation
The US Inflation for June will also be released on July 12. This data will be crucial for the Federal Reserve ahead of the policy meeting that is scheduled on July 26. China's monthly inflation and Europe and Japan's monthly industrial production numbers will also be released in the coming week.
IPO and Listing
Utkarsh Small Finance Bank will open its Rs 500-crore initial public offering on July 12 with a price band of Rs 23-25 per share. The closing date for the IPO will be July 14.
On the other hand Cyient DLM will be making its debut on Monday and Senco Gold will be listing on Friday.
In the SME segment, Kaka Industries and Ahasolar Technologies will open for bidding on July 10 while Service Care will launch its public issue on July 14. Drone Destination and AccelerateBS India are now set to close their issues on July 13 and July 14 respectively.
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