Market outlook: domestic data, earnings, global trends to drive stock markets

Market outlook: Analysts anticipate that stock markets will be influenced by a combination of factors this week, including domestic inflation data, ongoing corporate earnings releases, and global market trends.

Investors will closely monitor updates related to the general election, alongside tracking the trading activities of foreign investors, movements in global oil prices, and the trajectory of the rupee against the dollar.

Santosh Meena, Head of Research at Swastika Investmart Ltd., highlighted the significance of economic data releases both domestically and globally. Key events include the Consumer Price Index (CPI) and Wholesale Price Index (WPI) in India, and the US Producer Price Index (PPI) and Consumer Price Index (CPI). Federal Reserve Chair Jerome Powell's speech, China's industrial production data, and Japan's GDP figures will also be closely watched.

Vinod Nair, head of research at Geojit Financial Services, stressed that short-term market trends may be influenced by uncertainties surrounding the elections. In the upcoming data-heavy week, attention will be on India and US CPI data, Europe and Japan's GDP releases, and Fed Chair Powell's speech, along with ongoing Q4 corporate earnings.

Major companies like DLF, Zomato, Bharti Airtel, and Mahindra & Mahindra are scheduled to announce their earnings during the week, which will further impact market sentiment.

Arvinder Singh Nanda, Senior Vice President at Master Capital Services Ltd., outlined that market direction will also be shaped by various economic indicators including India's WPI inflation data, US PPI data, Core CPI data, Japan's GDP data, and India's Q4 company results.

Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd., expects market consolidation within a broader range, with cues taken from Q4 results, global factors, and news surrounding the general election.

Last week witnessed a decline in both the BSE benchmark and Nifty indices, amidst negative local sentiment. However, global market strength, particularly in the US, played a role in mitigating the extent of the decline. Investors are advised to closely monitor both global market performance and local factors for market cues, according to Ajit Mishra, SVP, Research at Religare Broking Ltd.