Q2 Earnings, Inflation And Oil Prices In Focus, Know- Will Nifty Extend Its Recovery This Week?
New Delhi: Indian stock markets are likely to remain volatile this week as investors track September quarter earnings, inflation data, crude oil prices and global developments, analysts said. Results from major IT companies, including Wipro, HCL Technologies and Tech Mahindra, will be closely watched after better-than-expected earnings from Tata Consultancy Services (TCS) helped markets recover…
Indian stock markets are expected to remain uncertain this week as traders keep an eye on Q2 earnings, inflation data, oil prices, and worldwide happenings, experts stated. Results from leading IT firms like Wipro, HCL Technologies, and Tech Mahindra will be closely monitored after strong earnings from Tata Consultancy Services (TCS) last week helped revive the market.
Inflation figures, including September consumer price index (CPI) and wholesale price index (WPI), will play a key role in shaping market sentiment. Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, warned that higher-than-anticipated inflation could reignite worries about additional Reserve Bank of India (RBI) rate hikes, impacting banking, automotive, and real estate stocks.
If inflation eases, however, it could offer brief respite, particularly if Brent crude oil remains above USD 100 per barrel. IT earnings will be the main focus in September, with results from HCL Technologies, Wipro, and Tech Mahindra expected to drive the market. Analysts think that earnings guidance and management comments will decide whether the sector's recovery persists.
Crude oil and foreign institutional investor (FII) selling pose risks, as Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services, anticipates Indian equities to stabilize with improving corporate earnings and ongoing global uncertainties. Brent crude above USD 100 per barrel and continued FII selling are seen as major concerns.
Geopolitical tensions involving Iran and the Strait of Hormuz also continue to endanger global energy supplies, according to Ponmudi R, CEO of Enrich Money. Investors will also keep track of US inflation, employment data, Treasury yields, dollar movements, and rupee trends. After a seven-week losing streak, the Nifty rose 0.43% last week, indicating some market stabilization.
The Sensex climbed 562.63 points, or 0.78%, while the Nifty increased 98.5 points. Analysts foresee stock-specific movements as earnings announcements start to roll in.
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