Market Outlook: Macro-data, Q3 results to drive equity indices

Last Updated: Sun, Feb 10, 2019 12:10 hrs
Sensex (PTI image)

Mumbai: Macro-economic data points combined with the direction of foreign fund flows and the rupee's movement against the US dollar are expected to influence the Indian equity market next week, analysts opined.

The ongoing quarterly results season, along with crude oil price fluctuations, will also impact investors' risk-taking appetite.

"Market will closely watch the macroeconomic data, which are scheduled to release next week, crude oil prices, rupee movement and inflow or outflow of the funds by foreign and domestic investors," SMC Investments and Advisors Chairman and Managing Director, D.K. Aggarwal told IANS.

Vinod Nair, Geojit Financial Services Head of Research: "A fall in interest rates and improving outlook for consumption oriented sectors after interim budget will provide support to the market."

"On the global front, pessimism over growth and trade disputes may lead to volatility."

The Central Statistics Office (CSO) is slated to release the macro-economic data points of Index of Industrial Production (IIP), Consumer Price Index (CPI) on February 12.

Besides, investors will look forward to the macro-economic data points of WPI (Wholesale Price Index) and India's trade figures.

"Next week government will unveil CPI inflation and IIP date which will be keenly watched by the investors," Nair added.

Apart from the macro-data economic data points, the week ahead will be heavily influenced by Q3 corporate earnings.

Companies like Eicher Motors, India Cements, Motherson Sumi Systems, SpiceJet, Coal India, Hindalco Industries, Indian Hotels, Bharat Forge, Fortis Healthcare, GMR Infra, ONGC and Voltas are expected to announce their quarterly results in the coming week.

In addition, direction of foreign fund flows will become other major sentiment driver.

The week ended on February 8 also witnessed an inflow of foreign funds as FIIs were net buyers to the tune of over Rs 2,265 crore, provisional data on the BSE showed.

On technical charts, the National Stock Exchange (NSE) Nifty50 broke-out of a two month trading range last week.

"Technically, the break-out was not followed up by follow-through up-move but sell-off at the end of the week. This made the breakout look less convincing as the Nifty has closed well below the highs of the week," HDFC Securities' Retail Research Head Deepak Jasani told IANS.

"We expect the Nifty to continue to trade in a range between the 10,852-11,082 levels for the coming week."

Last week, both the key Indian equity indices -- S&P Bombay Stock Exchange (BSE) Sensex and the NSE Nifty50 -- rose on the back of Reserve Bank of India's rate cut along with healthy foreign fund inflows.

Consequently, the S&P BSE Sensex rose 289.79 points, 0.8 per cent, over the week to end at 36,546.48 points.

The broader NSE Nifty50 finished at 10,943.60, up 1 per cent or 112.65 points from its previous week's close.

(Rohit Vaid can be contacted at rohit.v@ians.in)