Macro data, quarterly earnings from IT majors, global trends to guide markets this week

TCS will announce its quarterly earnings on Wednesday and Infosys on Thursday


Industrial production and inflation data, quarterly earnings from IT majors and global trends would drive the equity markets in a holiday-shortened week, analysts said.

Moreover, foreign fund trading activity, movement of the rupee and global crude oil prices would also dictate terms in the market, they added.

Equity markets will remain closed on Friday for 'Dr Baba Saheb Ambedkar Jayanti'.

"Leading IT companies TCS and Infosys will report their results this week. Due to concerns about a worldwide recession, markets will pay close attention to management commentary. US inflation and non-farm payroll figures will be important things to keep an eye on the global front.

"In addition to FIIs' actions, other crucial market-determining variables include the movement of crude oil prices, the dollar index, and US bond yields," Santosh Meena, Head of Research at Swastika Investmart Ltd, said.

TCS will announce its quarterly earnings on Wednesday and Infosys on Thursday.

Ajit Mishra, VP - Technical Research at Religare Broking Ltd, said the stability on the global front has eased some pressure and now the focus would shift to earnings for cues.

Among macroeconomic data, industrial production data for February and March inflation rate are scheduled to be announced on Wednesday.

WPI inflation data for March would be announced on Friday.

"Federal Open Market Committee (FOMC) meeting minutes are to be announced this week, which can have an impressive effect on the global market. Investors are looking for signs of a future FED interest rate pause, which can have a positive impact on the global market else vice versa," Vinod Nair, Head of Research at Geojit Financial Services, said.

V.K. Vijayakumar, chief investment strategist at Geojit Financial Services, said FPI investment is showing a positive trend.

FPIs were continuous buyers during the last six trading days having invested Rs 4,738 crore. The basic reason for the change in FPI stance is the declining dollar index and falling bond yields in the US.

Also the rupee has been appreciating in recent days from around Rs 82.75 to 81.74 now. This trend is likely to gather momentum. FPIs have turned buyers in automobiles, financial services, capital goods, power and metals and mining. They have been selling in IT.

Last week, equity markets were closed on Tuesday (April 4) for "Mahavir Jayanti" and on Friday (April 7) on account of "Good Friday".

The 30-share BSE benchmark climbed 841.45 points or 1.42 per cent in the holiday-shortened week.

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