The stock market witnessed a robust performance last week, with Sensex reaching a remarkable milestone of 66,000 points for the first time. As investors look ahead to the coming week, experts suggest a possible consolidation phase in the market. With the ongoing earnings season, company results will significantly influence stock performance. Investors will closely monitor the impact of global and domestic market signals, foreign and domestic investor sentiment, monsoon progress, and crude oil prices.
Upcoming weeks will see the release of first-quarter results for numerous companies, shaping market dynamics. Prominent companies, including Crisil, LTI Mindtree, HDFC Bank, Tata Elxii, IndusInd Bank, ICICI Pru, Tata Communications, Canfin Homes, HUL, Infosys, and Mphasis, are expected to announce their results.
Monsoon affecting market sentiments see how?
The progression of the monsoon is another critical factor affecting market sentiment. Heavy rainfall and its consequences, such as floods and landslides, can lead to economic losses and impact companies’ performance.
Inflation is a concern as retail inflation rose to 4.81% in June, marking the first increase in five months. Food price hikes were the primary contributor to this rise. The situation is expected to persist in July, prompting the Reserve Bank of India (RBI) to potentially implement strict measures to keep inflation around the 4% target.
Foreign investors shown confidence with purchases of Rs 30,660 crore
The upcoming week is also busy with Initial Public Offerings (IPOs) and listings. Netweb Technologies India and Ashrafi Hotels are among the IPOs scheduled, while companies like AccelerateBS India, Kaka Industries, Drone Destination, and Ahasolar Technologies will be listed in the SME segment.
Foreign investors continue to show confidence in the Indian stock market, with net purchases of Rs 30,660 crore in the first half of July. This sustained foreign inflow bodes well for the market and may contribute to new highs.
Crude oil prices have witnessed volatility, with a recent decline due to profit booking. However, the rally may continue in the coming week, driven by factors such as declining inflation, strategic reserve plans, supply cuts, and disruptions.
