Next Week Market: Can Big IT Earnings Bring Bulls Back to Market? Key factors to promote

This week, markets will be closely watching the company’s performance for the second quarter of FY23 with a focus on TCS, Wipro, HCL Tech and Infosys. Overall, IT stocks will be the focus due to quarterly earnings. Globally, the FOMC minutes are likely to hold the dominant position in boosting market sentiment. While the inflation of major economies such as the US, China and India will also have a role to play. Domestic stocks will also track the movement of peers globally. Last week, both Sensex and Nifty 50 were up more than 3% each. Sensex is currently at 58,200 and Nifty 50 is near 17,315.

Last week, on Friday, Sensex closed at 58,191.29, down 30.81 points or 0.05%. While the Nifty 50 ended at 17,314.65 under 17.15 points or 0.1%. Tata Group’s Titan outperformed, while Power Grid, IndusInd Bank, NTPC and Maruti Suzuki were among the biggest gainers. Stocks like M&M, Ultratech Cement, SBI, and TCS are the leading laggards. In terms of industry indexes, consumer stocks outperform their peers, while metals, oil and gas, and IT are among the top losers. General market witnessed lackluster stock demand.

Meanwhile, the Indian rupee slid to a new record low of 82.43 against the US dollar on Friday before finally pegging at 82.30 per dollar.

On the other hand, after net buying for the third day in a row last week, FII made the flow 2,250.77 crore in the market on Oct 7. This week, FII bought in 279.01 crore on October 6th 1,344.63 crore on October 4 and 590.58 crore on October 3.

Overall, last week, Sensex increased by more than 1,775 points and Nifty 50 increased by more than 530 points. The market capitalization of BSE listed companies has increased 2.75,61,546.77 crore as of October 7, compared to the market capitalization of 2,71,84,601.83 crore as of September 30, 2022 — increase 3,76,944.94 crore.

According to Vinod Nair, Head of Research at Geojit Financial Services, the trend of the domestic market during the past week was mainly determined by global peers and provisional business data by companies. large announced. A relief rally was followed by an unexpected drop in the US Manufacturing PMI, which raised expectations that the US Fed would slow down its policy tightening. However, hawkish comments from Fed officials triggered selling over the weekend, ahead of the release of US jobs data. Stronger-than-anticipated jobs data could lead to market decline as it could give the Fed more reason to focus on inflation. OPEC’s decision to significantly cut production has boosted oil prices, which is detrimental to importers like India. The dollar rose as a safer investment due to higher US bond yields, sending the rupee to new lows.

What will happen in the markets this week?

According to Nair, the market’s attention will be on quarterly earnings next week, especially for information technology stocks. In addition, the performance of the domestic market will be significantly affected by inflation data which is expected to be released next week. It is forecast that domestic inflation will continue to be high in September at 7.0%, similar to the previous month.”

While Apurva Sheth, Head of Market Opinion, Samco Securities said, “The coming week will be a roller coaster ride as a series of important events are expected to be announced. Markets across the globe will be dominated by the FOMC minutes to be released next week.While global investors will be interested in keeping an eye on inflation figures in the US and China, the CPI of India will be an important domestic factor to watch.Moreover, Indian IT companies will kick off the quarterly results season.Specific Stocks The swings will be evident and as investors react. In response to earnings failure, they should consider the company’s long-term outlook instead of focusing solely on quarterly results.”

On the 50-scenario benchmark, Sheth said, “The Nifty ended the week 1% higher. After beating 18,100 a few weeks ago, it looks like the bulls are finally back in. bulls are expected to sustain 17,000 in October before attempting a retest at 18,100. Short term resistance is located at 17,500. Nifty50 closes the week at 17314.65, up 1.29% .”

Q2 results start to be released this week with TCS quarterly earnings being the first major results scheduled for October 10. HCL Tech and Wipro will announce Q2 results on October 12. October, followed by Infosys on October 13.

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