Macro data, corporate earnings, global trends to drive market this week: Analysts

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Updated: Jan 10, 2021 11:22 AM

Indian equity benchmark indices continued their record-setting run in the week gone by and marked their new peaks almost on a daily basis as they did in the past few weeks, riding on positive global trends, news on the COVID-19 vaccine front and economic recovery optimism.

sensex, marketSignificant losers were Power Grid Corporation, Shree Cement, Gail, NTPC and HDFC Bank, down by 2.1%, 1.8%, 1.56%, 1.04% and 0.92%, respectively.

Domestic equity market will keenly follow in the coming week macroeconomic data announcements and quarterly earnings of companies on the domestic front and also take cues from global trends, analysts said.

Domestic equity market, TCS, COVID-19 vaccine, Infosys, HCL Technologies Limited, global trendsIndian equity benchmark indices continued their record-setting run in the week gone by and marked their new peaks almost on a daily basis as they did in the past few weeks, riding on positive global trends, news on the COVID-19 vaccine front and economic recovery optimism.

“Markets will first react to the TCS numbers which came after the market hours on Friday. The consistent buying by foreign investors has been ensuring newer record highs in the benchmarks despite overbought signals. Going ahead, the upcoming macroeconomic data combined with the signals from the earnings would largely dictate the market trend,” said Ajit Mishra, VP – Research, Religare Broking Ltd.

The county’s largest IT company TCS on Friday reported a 7.2 per cent jump in December quarter net to Rs 8,701 crore on a consolidated basis, and seemed to suggest the worst is behind by projecting double-digit revenue growth for FY22.

“Going ahead, global cues will be watched closely for further trend in the market. Investors would also track the COVID-19 vaccine rollout in India post the dry-run, December quarterly results and the Union Budget on February 1. This week lots of macro data will be out including inflation and industrial output,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, said.

Among major earnings this week are Infosys, Wipro and HCL Technologies Limited.

Vinod Nair, Head of Research at Geojit Financial Services, said, “The focus of the Indian markets has currently shifted to third quarter earnings. Market also awaits major data points like inflation rate and industrial production.” During the past week, the Sensex rallied 913.53 points or 1.90 per cent, while the Nifty soared 328.75 points or 2.34 per cent.

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