Q1 earnings, global cues, FII to influence trading in equities this week

International oil benchmark Brent crude movement would also influence trading in the market, analysts say

PTIUpdated: Sunday, July 17, 2022, 12:59 PM IST
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Rupee gains 7 paise to 79.92 against US dollar in early trade | Photo: Pixabay

Financial results, foreign fund movement, global cues and trends in the rupee are the major factors that will drive the equity markets this week, analysts said.

Besides, international oil benchmark Brent crude movement would also influence trading in the market, they added.

“Market will react to HDFC Bank’s numbers on Monday, while Ambuja Cement, HUL, IndusInd Bank and Wipro will be the other prominent names for Q1 earnings this week,” Santosh Meena, head of research, Swastika Investmart, said.

On the global front, the European Central Bank (ECB) and Bank of Japan’s decision on the interest rates will be an important factor whereas the movement of the dollar index will remain a critical factor, Meena said.

“Market will also have an eye on commodity prices and behaviour of FIIs (foreign institutional investors),” Meena added.

HDFC Bank on Saturday reported a 20.91 per cent jump in its June quarter net profit at Rs9,579.11 crore on the back of overall growth. On a stand-alone basis, its net profit increased to Rs9,195.99 crore from Rs7,729.64 crore in the year-ago period, but was down from Rs10,055.18 crore in the preceding March quarter.

“In absence of any major event, we feel earnings and global cues will largely dictate the trend. We’re seeing a tussle among the bulls and bears, not only in Indian markets but globally,” Ajit Mishra, vice-president – research, Religare Broking, said.

The 30-share BSE benchmark fell 721.06 points or 1.32 per cent last week due to weak global trends, FII selling and concerns over high inflation.

“As concerns of growing inflation and recession hang over the global economy, Indian benchmark indices are projected to remain uncertain in the near term. Further, with earnings season in full swing, market players should avoid reading too much into India Inc’s numbers and instead focus on management commentary,” Apurva Sheth, head of market perspectives, Samco Securities, said.

“As the result season gains momentum, more stock-specific action would be seen in the market. Going ahead, the market is likely to continue its range-bound movement as the tug of war continues between global and domestic cues,” said Siddhartha Khemka, head – retail research, Motilal Oswal Financial Services.

Hindustan Zinc, IDBI, JSW Energy, PVR, Reliance Industries are among the other firms to announce their earnings this week.

With the start of the April-June 2022 quarter result season, we can expect stock and sector-specific action over the next one month, Shrikant Chouhan, head of equity research (retail) at Kotak Securities, said.

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