Financial results, macroeconomic data and foreign fund flows will be at the centre stage on Dalal Street this week, after Tata Consultancy Services (TCS) — India's largest software services exporter — kicked off the corporate earnings season last week.

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Globally, any wild moves in crude oil prices, a key inflation reading from the world's largest economy and commentary by major central bankers will be tracked closely for clues on the pace of hikes in COVID-era interest rates and its impact on growth.

The week that was

Last week, Indian equity benchmarks surged 3 percent backed by gains across sectors in their best weekly performance in nearly two months. It was the third back-to-back weekly gain for both headline indices.

A total of 43 stocks in the Nifty50 basket rose for the week.

Tata Motors, Britannia, Bajaj Finserv, PowerGrid and Tata Consumer — rising 6-7 percent — were also among the top blue-chip gainers.

All sectors participated in the upmove, with PSU banking, consumer, and banking stocks at the forefront.

Broader markets also mirrored the gain in main indices.

The road ahead

The corporate earnings season is likely to remain on investors' radar for the next few weeks. Besides, macroeconomic data from the domestic as well as global markets will be tracked closely.

"The inflationary problem is not just restricted to the West. Indian inflation numbers back home will keep the market busy," said Apurva Sheth, Head of Market Perspectives at Samco Securities.

"Management commentary on the future earnings growth trajectory will be of interest to D-Street participants... Investors are advised to be careful and cautious in their decisions," he said.

Technical view

One can expect a further rebound in the Nifty50 index this week, according to Ajit Mishra, VP-Research at Religare Broking.

"The index could test the 16,500 zone while the 15,650-15,900 band would provide a cushion in case of a dip," he said.

Mishra prefers auto and FMCG pockets and suggests nibbling selectively in the banking and financial spaces. He sees some rebound in energy and metal stocks but is of the view that the overall structure of the market remains weak.

Here are the key factors and events that are likely to influence Dalal Street in the week beginning July 11:

DOMESTIC CUES

Corporate earnings

Macroeconomic data

Separate data sets on consumer inflation and industrial production in the country are due on Tuesday.

Data on wholesale inflation will be released on Thursday.

FII activity

Investors will continue to monitor the flow of institutional money closely.

Foreign institutional investors (FIIs) net sold Indian shares worth Rs 2,218.4 crore last week, according to provisional exchange data. Domestic institutional investors (DIIs), on the other hand, made net purchases of Rs 3,910.3 crore.

Corporate action

GLOBAL CUES

First Published:Jul 10, 2022 9:25 PM IST