The Indian stock market is expected to consolidate after the record rally in the previous weeks while it will also be guided by global cues as well as trades of foreign and domestic investors this week.
The US Federal Reserve Chair Jerome Powell's semi-annual testimony is scheduled for July 9. Earlier, he said that though the US inflation is slowing down compared to earlier this year, more such evidence would be needed before the Fed decides to cut interest rates. His testimony on Tuesday is expected to have an impact on Indian markets as well.
Analysts also believe that results of quarterly earnings reports of tech giants will also influence the market sentiments. Among the IT heavyweights, TCS will release its earnings on July 11, followed by HCL Technologies on July 12.
Vinod Nair, Head of Research, Geojit Financial Services, told news agency PTI, "As the market enters the earnings season, starting with IT bellwether TCS, expectations are optimistic for better results. Investors will closely watch management commentary for insights into the sector's outlook.”
Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, told the outlet that the expectations about the upcoming Union budget will also sway the sentiments on Dalal Street. “India's Union budget in July is a key event, with hopes pinned on growth-oriented policies and development of monsoon season, which will also be significant points of interest for investors and traders," he said.
"Furthermore, the activities of both foreign and domestic institutional investors (FII & DII) will be tracked, along with crude oil prices, to gauge overall market sentiment,” Gour added.
Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, told the outlet that India's Consumer Price Index data as well as date on UK GDP and US core CPI inflation will also guide the market.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said, "This week, we expect stock and sector-specific action as the market starts taking cues from Q1 FY25 earnings. On the macro front, investors will look out for inflation data that will be released by India, the US, and China.”
On Friday, the market capital of BSE-listed companies touched their lifetime peak of Rs 4,49,88,985.87 crore. A total of 2,242 stocks gained on Friday while 1,686 were laggards and 88 traded flat on the stock exchange.
The day before, Sensex hit its intraday lifetime peak of 80,392.64 in early trade and its all-time closing high of 80,049.67. The firms listed on the stock exchanged touched a market valuation of Rs 4,47,30,452.99 crore.
-- with inputs from PTI
