Sensex, Nifty: Factors likely to influence the market next week and key results to watch
The coming week promises to be crucial for the stock market as it will be heavily loaded with macroeconomic data and quarterly earnings announcements by some major companies. On the economic front, market participants will be keeping a close eye on data on deposit growth and bank lending growth which are expected to be released on October 21.
The value of deposits in India rose 9.5% year-on-year in the fortnight ending September 9. The value of loans in India increased by 16.40% year-on-year in the two weeks to September 2022. On the same day, exchange reserve data will also be available. India’s foreign exchange reserves fell to $532.66 billion on September 30 from $545.65 billion the previous week. Investors will also be keeping an eye out for some important quarterly numbers to be released next week. Among the companies that will release their quarterly results next week are ACC and PVR on October 17; Nestlé India, UltraTech Cement and Indusind Bank on October 19; Asian Paints, Bajaj Finance, Tata Consumer Products, Axis Bank and ITC on October 20; Bajaj Finserv, HDFC Life Insurance Company, JSW Steel, Hindustan Unilever and SBI Life on October 21. ICICI Bank and Kotak Mahindra Bank will announce their quarterly figures on October 22.
Market watcher Naveen Kulkarni, Chief Investment Officer at Axis Securities, said: “Indian markets are following their global counterparts, which have been significantly boosted by short hedging and also helped by market noise regarding rate expectations. ECB’s weaker terminals and the noise about the UK reversal. planned tax reductions. We expect market volatility to continue in the near term and therefore advise investors to stick to investing in good quality companies that are available at a reasonable price.
On the global front, traders will focus on key economic data from the United States (US), starting with the monthly fiscal report on October 17, followed by the Red Book, Industrial Production and the Market Index. NAHB Housing on October 18, Housing Starts on October 19, Philadelphia Fed Manufacturing Index, Initial Jobless Claims, Existing Home Sales on October 20, and finally Baker Hughes Oil Rig Numbers on October 21.
Market veteran S Hariharan, head of institutional equity sales at Emkay Global Financial Services, said: “FII flows to India have turned negative in recent sessions, following a positive start in October. , despite expectations of a strong earnings season , the broader market moved sideways, with DII inflows offsetting FII sell-offs Fears of possible downward revisions to IT stock earnings failed to materialize so far, while banks are expected to post strong profits in the coming weeks.
“The current bout of macro volatility is expected to continue to cap any meaningful upside in indices, despite strong fundamentals. Consumer staples and discretionary names came under some pressure on concerns over margins in the future with the recovery in commodity prices,” he added.
Investment expert Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “REITs continued to sell off in October. According to NSDL data, REITs sold shares worth Rs 7,457 crore till October 15, taking their net sale of shares to Rs 1,76,246 crore so far in CY 2022. A significant trend in selling REITs is that whenever they sell continuously, the sale is significant. in the finance and IT sectors, which make up the bulk of REIT holdings. »
“This trend is evident now too. REITs also sell into oil, gas and metals as these segments will also be impacted by a global economic downturn. The main trigger for selling REITs is the sustained rise in the dollar and expectations that the dollar will continue to remain strong in the current global macroeconomic construction. A reversal in REIT selling will occur when the dollar shows signs of peaking and reversing.”