Global factors, crude oil, macro data to boost stocks this week: analysts


Stock markets would be driven by domestic macro data, global trends, crude oil movement and FII activity this week and could remain volatile ahead of the start of quarterly earnings season, analysts said.

Tepid global signals and nervousness ahead of the earnings season impacted sentiment, they said.

“There is a sell-out at lower levels as the market rebounds from every intra-day dip amid headwinds like falling global markets, weak rupiah and the one-off domestic refinery tax.

“FIIs are still selling, but momentum has slowed significantly, therefore bulls will seek a rally if global markets remain stable,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Crude oil prices, the dollar index and the movement of the rupee will be other dominant factors, Meena added.

“This week marks the start of earnings season and IT major TCS would announce its numbers on July 8. Participants will be watching its results closely for any changes in guidance amid fears of a global slowdown.

“In addition, the performance of global indices, the movement of crude and updates on the ongoing fight between Russia and Ukraine will be the main focus,” said Ajit Mishra, Vice President – Research, Religare Broking Ltd.

Based on the macro data announcement, Tuesday’s Purchasing Managers’ Index (PMI) services sector data would also influence trade.

Yesha Shah, Head of Equity Research, Samco Securities, said: “The market is expected to remain volatile due to a host of events influencing the market. Open Market Committee (FOMC) to see In addition, global markets would be influenced by inflation figures from China, due this week.

“Back home, Q1 earnings season will boost market sentiment and stock-specific actions.”

Last week, the Sensex rose 179.95 points or 0.34%, while the Nifty gained 52.80 points or 0.33%.

Markets remained resilient despite numerous headwinds where major indices managed to close with gains for the second week in a row, analysts said.

“Nifty has been locked in a wider range for the past 15 trading sessions and has witnessed increased volatility. Motilal Oswal Financial Services Ltd, said.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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