India News Get -BusinessSensex and stock market movement this week; Factors affecting market movement, company results, third quarter results,
Stock market fluctuations are expected this week. During this period, companies like Reliance, Infosys, HCL Tech, Tech Mahindra, Wipro, Kotak Mahindra Bank, Axis Bank will release third quarter results of the financial year 2024-25.
After last week’s sharp market decline, the market is expected to strengthen in the week beginning January 13, but corporate earnings data, monthly inflation data in America and Europe, data on quarterly growth in China and crude oil price announcement will not be available as many factors will decide the market movement.
According to Vinod Nair, head of research at Geojit Financial Services, the market is expected to remain volatile this week. Because investor reactions to earnings, macroeconomic data and global signals will be monitored.
Globally, labor market data and inflation trends in the US economy could impact FII flows. While rising crude oil prices will increase inflationary pressures.
5 factors that will decide the market movement this week…
1. Third Quarter Results: The market will also focus on upcoming corporate earnings this week. Companies like Reliance Industries, Infosys, HCL Tech, Tech Mahindra, Wipro, Kotak Mahindra Bank, Axis Bank will release their results. They have more than 30% weightage in Nifty 50. These results will affect market movements. TCS has had a good start with quarterly results.
2. Retail Inflation Data: The market will also keep an eye on the retail inflation data for December, coming on January 13. Retail inflation fell to 5.48% in November. This is 0.73% less than in October. In October, retail inflation reached 6.21% due to the cost of food.
Inflation fell in November due to falling food prices. Food products contribute around 50% to the inflation basket. It should fall to 5.3% in December. Apart from this, Trade Balance data will be released this week on January 15 and Forex data on January 17. These will also play an important role in determining the direction of the market.
3. US inflation data: US inflation data will be released. Strong US jobs data last week suggests a pause in the interest rate cycle at the next policy meeting.
Economists expect December inflation data to rise slightly from last month’s 2.7%, while the core inflation rate is expected to remain stable at 3.3%. Apart from this, PPI, retail sales, housing starts and industrial production figures along with weekly employment data for December will also be monitored.
4. Chinese GDP and other global economic data: The market will also keep an eye on the Chinese GDP figures for the October-December quarter of 2024. On this subject, the analyst estimates that it will probably be around 5%.
It was 4.6% in the previous quarter, down to 4.6% from 4.7% in the second quarter (Q2-2024) of the last financial year. Apart from this, the market will also keep an eye on inflation data from Europe and the UK, as well as vehicle and retail sales data from China.
5. FII and DII: Apart from this, the focus will also be on institutional activity. Because Foreign Portfolio Investors (FII) sold a lot last week. If we talk about this month so far, the total market outflow stands at Rs 21,357 crore.
However, domestic institutional investors (DIIs) have fully offset foreign capital outflows. DII purchased shares worth Rs 21,683 crore last week and Rs 24,216 crore so far in January. DIIs buy when the market falls.
The stock market fell 1,845 points last week.
On the last trading day of the week i.e. Friday, January 10, the Sensex fell by 241 points and closed at 77,378. Nifty also fell by 95 points and closed at the level of 23,431. The BSE Smallcap has closed at 52,722 with a decline of 1,298 points.
Out of 30 Sensex stocks, 22 fell and 8 rose. Out of 50 Nifty stocks, 36 fell and 14 rose. While a stock closed without any change. The IT sector accounted for 3.44% in the NSE sector index. Apart from this, all sectors closed lower. The media sector fell the most by 3.59%. At the same time, after a week of trading, the stock market fell by 1,845 points.